PB Fintech slumps 8% even as Policybazaar parent eyes healthcare sector; multibagger zooms 130% in a year

PB Fintech stock has zoomed 130 percent in the last one year compared to Nifty's rise of 30 percent

Shares of PB Fintech extended losses on September 26, falling as much as 8 percent even as media reports claimed that the parent company of Policybazaar is considering a foray into the healthcare sector. The company is said to be in advanced discussions regarding a new model, with an announcement expected soon.

In response to the speculation, PB Fintech clarified, stating, “If claims processing were a quicker and smoother experience, it would encourage more people to purchase health insurance. Aligning the interests of insurers and hospitals could enhance the claims experience for customers and, in turn, boost insurance penetration.”

Yashish Dahiya, CEO and Chairman of PB Fintech, mentioned in a recent analyst call that the company is actively exploring opportunities in this space.

“We are continuing our exploration, but have no new decisions to share at this time. Should a decision be made, we will promptly inform the stock exchanges,” the company noted in a regulatory filing.

At 10:30 am, PB Fintech shares were trading 7.5 percent lower at Rs 1,592.10 on the National Stock Exchange (NSE).

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Media reports suggest that this is a strategic move by PB Fintech aimed to unlock new value within the healthcare ecosystem, diversifying the company's portfolio beyond its current focus on insurance and financial services. The PaisaBazaar parent has reportedly tied up with various insurance companies for telemedicine-specific products.

PB Fintech reported a net profit of Rs 60 crore for the fiscal first quarter that ended June 30, 2024, compared to a net loss of Rs 11.9 crore in the previous corresponding quarter. The company's total insurance premium was Rs 4,871 crore, driven by a 78 percent on-year growth in the new health and life insurance business.

PB Fintech share price has seen a stellar run so far this year, rising more than 100 percent, doubling investors' capital. In the past 12 months, the counter has zoomed 130 percent compared to Nifty's rise of 30 percent. PB Fintech stock ended 5.8 percent down in the previous session at Rs 1,732 on NSE.

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