Jefferies starts India's PB Fintech with 'buy', sees earnings boost

PB Fintech

12/02/2024 04:17

** Shares of PB Fintech Ltd  PBFI.NS  up 2.6% at 958 rupees
    ** Jefferies starts with "buy" and street-high PT of 1,150
rupees
    ** Co's online insurance platform Policybazaar to benefit
from rising insurance penetration, customer shift to online
channels
    ** Adds premiums to post 30% CAGR from FY25-27 and EBITDA to
grow 5x, aided by strong performance at more profitable renewals
business
    ** Sees revenue growth slowing at online loan platform
Paisabazaar after RBI's new unsecured consumer lending norms,
but says PBFI faces lower risks from industry headwinds vs peers
    ** Stock's rich valuation of FY26 EV/EBITDA of 44x justified
by dominant competitive positioning, asset light model -
Jefferies
    ** Fifteen analysts covering PBFI rate it "buy" on avg;
median PT is 972.5 rupees - LSEG data
    ** Stock up over 20% so far this year


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))