PB Fintech jumps 5% to 52-week high on incorporating subsidiary PB Pay

Shares of PolicyBazaar parent PB Fintech surged over 5 percent on April 10 to hit a 52-week high of Rs 1,400.35 on the NSE, a day after the company incorporated a subsidiary unit.

“We hereby inform that a wholly owned subsidiary of the company by the name of PB Pay Private Limited has been incorporated vide certificate of incorporation issued by registrar of companies, Central Registration Centre, Ministry of Corporate Affairs, dated April 9, 2024,” the company said in an exchange filing.

In March, the promoter of PB Fintech had approved the incorporation of PB Pay which was created to conduct the business of payment aggregator with a paid-up capital of Rs 27 crore.

Follow our market blog to catch all the live action

The sharp rise in PB Fintech share price also comes after the insurance tech company announced a partnership with ICICI Lombard to provide insurance solutions to 1 crore customers.

Morgan Stanley has an ‘equal-weight’ rating on PB Fintech with a target price of Rs 1,010 per share. Notably, ICICI Lombard was absent from Policybazaar’s online retail platform for an extended period. The recent entry of ICICI Lombard is likely to be seen by investors as reinforcing PB Fintech’s business, according to the brokerage.

Despite this positive development, Morgan Stanley maintains an equal-weight stance on the company, citing its expensive valuation as a factor.

At 9:25 am, PB Fintech shares were trading 4.9 percent higher at Rs 1,367.00 on the National Stock Exchange. The stock has seen an uptrend since the company turned profitable in Q3FY24 as it posted a PAT of Rs 37.2 crore. Since its Q3 earnings were released on January 30, PB Fintech shares have gained around 50 percent.

So far this year, the PB Fintech shares have rallied over 70 percent, outperforming the benchmark Nifty 50 which has risen 4.4 percent during this period. In the last one year, the stock has delivered multibagger returns of over 130 percent.

Also Read | PB Fintech incorporates wholly-owned subsidiary PB Pay

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.