The first-ever profit posted by insurance aggregator PB Fintech catapulted the stock to a fresh 52-week high of Rs 1,039.90 on the NSE on Wednesday as the scrip jumped over 14% in the early trade.

The stock also crossed the initial public offering (IPO) issue price of Rs 980 after more than 2 years of its D-Street debut.

Target price upgrades for Policybazaar shares by a clutch of top brokerages served as the icing on the cake.

In its post-earnings stock review note, BofA raised the target while retaining its neutral rating on the counter. Kotak Institutional Equities also maintained a buy view relying on its broad-based growth story to sustain despite headwinds in select segments. Nuvama raised the price target though it retained the ‘reduce’ rating on stock’s rich valuations

PB Fintech on Tuesday reported strong numbers for the quarter ended December 2023, with the company posting a consolidated net profit of Rs 38 crore, against a loss of Rs 87.3 crore a year ago, and a loss of around Rs 20 crore a quarter ago. Revenue from operations increased 43% year-on-year (YoY) to Rs 871 crore.

Read more at: PB Fintech Q3 Results: Policybazaar parent posts Rs 38-crore PAT vs loss a year agoHere’s what brokerages recommended:BofA: Neutral | Target: Rs 995
BofA has maintained a ‘Neutral’ stance on the counter even as it hiked the target price to Rs 995 from an earlier target of Rs 840. The company delivered a strong beat on profitability despite a revenue miss, the brokerage said, adding that the insurance business was strong. Revenues missed estimates mainly led by weaker PaisaBazaar though PolicyBazaar revenue momentum remained strong at 10% QoQ, the US brokerage said.

Kotak Equities: Add | Target: 950
Kotak Equities retained its ‘Add’ rating on the Policybazaar counter estimating a fair value of Rs 950. PB Fintech continued to deliver strong premium growth, Kotak said in its post-earning stock review. Improved operating leverage reflects lower non-core expense growth and ESOP charges despite QoQ yield compression which led to its maiden PAT of Rs 37.20 crore versus loss of Rs 21.10 crore in 2QFY24. The broad growth story rolls on even as select segments (non-par, credit business) may face headwinds.

PB Fintech benefits from its multi-product offerings, which reduce the impact of any single major change in the industry, Kotak said, highlighting how life companies struggled on VNB (value of new business) growth front due to lower non-par business this year. In contrast, PB was able to offset the same by sale of ULIPs and health products.

Nuvama: Reduce | Target: Rs 790
Nuvama tweaked its near-term FY25E/26E EBITDA by 1.7/0% to build in slightly higher growth. This along with a rollover to FY26E increases Nuvams’s DCF-based target price to Rs 790 from Rs 750. However, the brokerage downgraded the stock to ‘Reduce’ given its rich valuations.

The company’s first-ever PAT was a result of strong other income, Nuvama opined.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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