Kotak analysts highlighted that PB Fintech had underperformed in recent months despite strong business performance. The brokerage noted concerns around a proposed international insurance distribution acquisition and upcoming regulations on insurance commissions.
With these uncertainties easing, Kotak said the stock now offers a more attractive long-term proposition.
The firm retained its fair value estimate of ₹1,725 per share.
PB Fintech reported robust growth in its core insurance business, driven by term and health products. The company’s new business premium grew 45% year-on-year in the third quarter of FY2026, with commissions remaining stable at around 20.8%.
Kotak expects the company to maintain strong premium growth in the near term, even as commission rates moderate gradually.
The brokerage noted that PB Fintech’s diversified insurer mix, strong cash flows, and track record of execution support its ability to sustain growth despite regulatory changes.
PB Fintech’s board recently postponed a meeting on an international acquisition proposal, indicating that the company may pursue such plans privately.
According to Kotak’s estimates, PB Fintech is expected to report a profit after tax of ₹1,100 crore in FY2027, up from ₹680 crore in FY2026, supported by strong revenue growth and improving margins.
The company’s market share in its addressable insurance market is projected to increase to 18% by FY2032 from 10% in FY2026.
On the BSE, PB Fintech’s shares traded at ₹1,500 apiece, against a 52-week range of ₹1,312 to ₹1,977.
Catch LIVE updates on share markets today