Shares of PB Fintech Ltd. crossed their IPO price of ₹980 on Wednesday after the company reported its first-ever quarterly profit in the December quarter. The stock had slipped below its IPO price in January 2022, following which it made an all-time low of ₹356 in November that year.
Since then, the stock has staged a rebound and has now crossed its issue price. However, the stock is still 33% below its all-time high of ₹1,470, which it hit in November 2021, a few weeks after listing.
PB Fintech reported a net profit of ₹37 crore, compared to a loss of ₹87 crore during the same period last year. Adjusted EBITDA margin for the quarter stood at 4% compared to a negative margin in the year-ago quarter.
Brokerage firm Morgan Stanley maintained its overweight stance on the stock with a price target of ₹965. However, it said that there could be downside risks to the near-term forecasts and that the stock could take a breather after its recent outperformance. It also said that core business was weaker than its internal estimates due to regulatory changes in the unsecured personal loans category.
Macquarie has also maintained its Underperform rating on the stock with a price target of ₹610. The company has seen a decline in the insurance take rate and revenues of Paisabazaar. It said that the asking rate for the March quarter is a profit of around ₹37 crore, which looks achievable given the strong seasonality.
Out of the 17 analysts that track PB Fintech, 12 of them have a "buy" rating, two say "hold" while three have a "sell" call.
Shares of PB Fintech are trading 10% higher at ₹1,001.
First Published: Jan 31, 2024 9:33 AM IST
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