The positive sentiment follows robust second-quarter earnings. Jefferies highlights PB Fintech’s strong growth trajectory, bolstered by increasing online premiums and renewal revenues that are expanding the company’s EBITDA margins.
The brokerage firm noted that while there have been some drags in the credit business, the strong performance in renewal revenues has offset these challenges, positioning PB Fintech favourably in the market.
Jefferies also raised its growth forecasts for PB Fintech, expecting an increase in discount cash flow (DCF) growth by approximately 100 basis points. They project a solid 31% growth rate in DCF for FY25 to FY29, with a sustained 20% annual growth over the next five years.
In line with these projections, Jefferies has maintained its “buy” recommendation for PB Fintech, raising the target price from ₹1,800 to ₹2,000 per share.
The upbeat outlook from Jefferies comes on the heels of PB Fintech’s impressive Q2FY25 results, which showcased significant operational strength. The company’s management reinforced this positive sentiment, expressing optimism about the company’s trajectory and its capability to continue driving growth in core areas.
In response to these favourable factors, PB Fintech’s stock price surged by 4.65% on Thursday, closing at ₹1,740.65 per share. Over the past three months, the stock has delivered 17.89% returns.
