PB Fintech shares rise 3% on a near three-fold rise in net profit: Should you buy, sell or hold?

Policybazaar-parent PB Fintech shares gain after firm’s Q4 net profit zooms 184% to Rs 171 crore: Should you buy, sell or hold?

The shares of Policybazaar-parent PB Fintech were higher by over 3 percent in early trade on May 16 after the company reported a massive 184 percent on-year surge in net profit to Rs 171 crore for the fourth quarter of FY25.

PB Fintech released its results for Q4 of the financial year 2025 during post-market hours of May 15. Its revenue from operations grew over 38 percent to Rs 1,508 crore in Q4FY25 from Rs 1,090 crore in Q4FY24.

Total insurance premium for the quarter under review stood at Rs 7,030 crore, marking a 37 percent rise from the same period last year. The insurance broker service segment saw net profit jump nearly 99 percent on-year to Rs 274 crore.

Morgan Stanley on PB Fintech

Despite the strong surge in net profit, Morgan Stanley has kept an 'Underweight' call on PB Fintech with a target price of Rs 1,130 per share, implying a downside potential of over 36 percent from the previous closing price of Rs 1,777.7 per share.

The brokerage noted that core new premium growth for PB Fintech has moderated to 21 percent YoY from 44 percent in quarter ago, driven by slower savings growth.

The revenue too fell below the brokerage's estimate, while adjusted EBITDA was above the expectation. Notably, PB Fintech reported an EBITDA of Rs 113 crore for the quarter. Morgan Stanley said its 'Underweight' call on the stock was driven by steep valuation multiples of the company.

Jefferies on PB Fintech

Jefferies has maintained a 'Buy' rating on the stock with a target price of Rs 2,000 per share, implying an upside potential of over 12.5 percent from the previous close.

The 35 percent YoY growth in online premium was in-line with Jefferies estimates, the brokerage said in its note.

Citi on PB Fintech

Citi also reiterated its 'Buy' call on the stock with a target price of Rs 2,150 apiece, which implies an upside potential of nearly 21 percent from the previous close. The company's net profit was higher than its street estimates.

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Shares of PB Fintech shares have so far risen over seven percent in the past five days, however, they are down nearly 15 percent so far in 2025.