Shares of PB Fintech Ltd (parent firm of online marketplaces Policybazaar and Paisabazaar) saw a sharp uptick in Wednesday’s trade to scale their all-time high levels. The stock surged 15.42 per cent to hit a high of Rs 1,709.40. It was last seen trading 6.05 per cent up at Rs 1,570.60. At this price, the scrip has rallied 96.19 per cent on a year-to-date (YTD) basis.
The company’s profit returned to the black in the June 2024 (Q1 FY25) quarter. The insurance aggregator posted a net profit of Rs 60 crore in Q1 FY25 as against a loss of Rs 12 crore in the year-ago period.
During the June 2024 quarter, the revenue from operations of the company grew 51 per cent year-on-year (YoY) to Rs 1,010 crore compared to Rs 665.5 crore in Q1 FY24. Also, the insurance aggregator reported an exceptional gain of Rs 41 crore in the quarter.
“We are extremely thrilled with our Health and Life insurance business, which are a bulk of our long-term values; which are witnessing a combined growth of 78 per cent YoY in new premium for Q1 FY25,” PB Fintech’s management stated in a recent earnings call.
“We have probably overspent by about $3 million this quarter in terms of actual operating capacity but that’s a sign of our confidence that we believe this growth could carry on and that’s why we’ve done that,” it added.
On the stock-specific front, Kotak Institutional Equities has assigned a ‘Reduce’ call on the counter. The domestic brokerage has pegged it at Rs 1,400.
Technically, support on the counter will be at Rs 1,450. And, a decisive breach above Rs 1,730 level is required for more upside.
“The stock was in a consolidation phase. Looking at the overall chart pattern, one can expect a target price of Rs 1,800 over a short time. Keep a strict stop loss of Rs 1,450,” Kiran Jani, Head of Technical Research at Jainam Broking, told Business Today TV.
Immediate resistance on the counter will be at Rs 1,730 and a decisive close above the said level can only dictate the next leg of an upward move, said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
The expected trading range will be between Rs 1,450 and Rs 1,730 in the near term, Patel added.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.