Shares of Policybazaar parent, PB Fintech surged over 5 percent on January 22 after brokerage firm Citi placed the stock under a 90-day positive catalyst watch.
Citi remains optimistic about PB Fintech's prospects, generating its confidence from expectations of sustained growth in its retail protection, retail health, and savings businesses. According to Citi, this growth is expected to provide greater visibility to the company's medium-to-long-term revenue and profitability trajectory.
"Favourable commentary from the management on key factors such as the ramp-up in field operations, indexed productivity, and margin trajectory could further boost investor sentiment," Citi noted in its report.
The brokerage has maintained a 'buy' rating on PB Fintech with a target price of Rs 2,000, translating into a 24 percent upside from Wednesday's closing price.
At 1.35 pm, shares of PB Fintech were trading at Rs 1,686.95 on the NSE. Despite the gains, the stock is still down nearly 30 percent from its record high.
Follow our market blog to catch all the live action
Meanwhile, Citi is particularly confident in PB Fintech's ability to scale its hybrid "phy-gital" strategy, which integrates physical and digital channels, enabling the company to expand its life savings and high-ticket retail health businesses.
Additionally, the management's reiteration of its Rs 1,000 crore net profit guidance for FY27, coupled with the consideration of a $100 million investment in a new venture, is expected to further strengthen investor confidence, Citi believes.
While Citi does take note of the possibility of quarterly margin volatility, it still believes that the operational performance of annuity models is best assessed by monitoring incremental business momentum.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
