Bernstein limits PB Fintech's downside at $100 million if healthcare foray falters

PB Fintech shares fell 5 percent in the past month.

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26 Aug, 2025 12:21

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Brokerage firm Bernstein has taken a cautious stance on PB Fintech's plans to foray into the healthcare space. Bernstein contention comes primarily from PB Fintech's capital allocation of $100 million for a 30 percent stake in a new healthcare venture, however, since this is expected to be a one-time investment, the brokerage sees limited downside impact on the stock price.

If the venture falters, Bernstein caps the downside at $100 million for the company, but if successful, it could position PB Fintech to dominate the broader Indian healthcare insurance market. The management has acknowledged the venture's risks, emphasising the one-time nature of the investment, a view that is shared by Bernstein shares, further limiting downside concerns.

Last month, Alok Bansal, Co-Founder and CFO of PB Fintech, clarified in an interaction with CNBC-TV18 that while the insurance aggregator remains committed to improving healthcare experiences, it has no plans to own physical assets like hospitals. “We are clear about fixing the healthcare experience space. We are not looking at asset ownership,” Bansal said.

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Taking comfort from this, Bernstein retained its 'outperform' call on PB Fintech with a price target of Rs 1,720, implying a mere 4 percent upside potential from the previous closing level.

Apart from this, the brokerage also expressed confidence in the strong business momentum in PB Fintech's insurance business, which continues to provide it comfort.

On October 10, shares of PB Fintech ended marginally lower at Rs 1,655.60 on the NSE.

Also Read | Brokerages cautious over PB Fintech's foray into healthcare sector

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