Investec starts coverage on India's PB Fintech with "buy", shares up

PB Fintech

01/08/2023 09:40

** Investec initiates coverage of PB Fintech  PBFI.NS  with
a "buy" rating, sets PT of 1,000 rupees
    ** Analysts at Investec see strong profit growth outpacing
revenue growth for the next 10+ years
    ** Sees PBFI's stock gaining 39.9% in the next 12 months
    ** PBFI is the parent of online insurance aggregation
platform PolicyBazaar and digital loan and credit card platform
PaisaBazaar
    ** In India, PBFI is a dominant online platform for
insurance with 90%+ market share and credit origination with
50%+ market share - Investec 
    ** Brokerage expects revenue growth at co's new initiatives
- PB Partners, PB Corporate, PB UAE - to be strong in FY25E,
expects them to break even on contribution level in FY27E
    ** However, the new initiatives are expected to be a drag on
EBITDA in foreseeable future, brokerage adds
    ** Shares of PBFI rise as much as 4.5% to 764.50 rupees on
Tues 

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))