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Policybazaar share at half price from record high, 20% below IPO price, now is investment opportunity

The stock of Policybazaar is trading at 90 per cent discount to its record high and 20 per cent discount to the IPO price.

PB Fintech Stock Price: The IPO of PB Fintech, which operates Policybazaar and Paisabazaar.com, came in full swing last year. But it remained involved in the stock sinking investors’ money. The listing of PB Fintech took place at a premium of 17 per cent in the market and after the listing, there was a good rally in the stock. But now this stock is trading at 90 per cent discount to its record high and 20 per cent discount to IPO price. Brokerage house ICICI Securities has described it as a better investment opportunity. Initiating the coverage on the stock, the brokerage has given a buy advice and expects an upside of 20 to 21 percent.

Why PB Fintech will boom

Brokerage house ICICI Securities says that PB Fintech (PBF) is involved in leading insurance and lending intermediaries in India. It mainly operates through its platforms PolicyBazaar and PaisaBazaar. At the same time, it has also entered in new business. PB Fintech is well poised to take advantage of the growing insurance penetration in India especially through digital distribution. High growth, operating leverage, strong balance sheet and established brand recall are its key strengths. This will help the company generate strong free cash flow. The brokerage expects that its cast-to-income ratio will improve further. The brokerage house has given a target of Rs 940 while advising to buy in the stock. Compared to Monday’s closing price of Rs 776, it can get 21 percent return.

These are also positive factors

Business model with higher growth than other insurance companies
Renewable book to ensure high operating leverage
More benefits than other companies from the new initiatives being taken by the company
Cost escalation is the only risk for the company. The cast-to-income ratio is expected to improve further.
Conso’s FY26E Adjusted EBITDA Estimated at 1020 Crore.

Strong entry in the market

The stock of PB Fintech was listed on 15 November 2021 at a premium of 17 per cent in the market. The share price in the IPO was fixed at Rs 980, while it was listed on the BSE at Rs 1,150. At the same time, the stock made a high of Rs 1478. However, now the stock has weakened by 90 percent from its high and 20 percent from the issue price. The company operates Policybazaar and Paisabazaar.com. Both are market leaders in their respective fields. There is a monopoly in the business of online insurance and online lending. However, there is concern about the profits of the company.

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