Stock Of The Day: PB Fintech Slides 30% In 2025, Citi Expects Catch-Up Rally On High Growth Visibility

Shares of PB Fintech Ltd. — the parent of insurance aggregator PolicyBazaar — have been under bearish pressure since the beginning of the year, as the stock has plunged nearly 30% in 17 sessions. However, Citi Research expects a catch-up, given the healthy earnings visibility.

From its life high of Rs 2,246.9 per share, the stock of the online insurance company plunged to Rs 1,610 mark on Wednesday. It took support in the same region with a strong bullish wick, indicating a positive momentum. The Rs 1,610-mark is also where the long-term trend gauge — 200-daily moving average — exists.

The counter will see immediate resistance near the Rs 1,720 level. A break out of this could send the stock towards Citi's target of Rs 2,000 apiece.

The scrip, however, currently is above the 14-day simple moving average and the 21-day exponential moving average. It rose as much as 5.84% to Rs 1,704.7 per share, compared to a 0.39% advance in the benchmark Nifty 50.

The sour performance this year comes after the stock rallied nearly 160% in 2024. The relative strength index was at 36, trading near the oversold zone.

Eight of the 20 analysts tracking the company have a 'buy' rating on the stock, three suggest a 'hold' and nine have a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 3.4%.

Citi Research opened a positive catalyst on the stock of PB Fintech, citing strength in life and retail health fresh business. The brokerage has a target price of Rs 2,000 per share, implying an upside of 24% from the previous close.

It expects the company’s new business growth to sustain retail protection, retail health and savings business-key ingredients, providing higher visibility on medium-to-long-term revenue and profitability trajectory.

Any favourable commentary from management on pickup in feet can further revive investor sentiment, analysts at the brokerage firm said. Management’s reiteration of fiscal 2027 profit guidance of Rs 10 billion, even while considering any potential investment of up to US $100 million in new venture, will likely increase investor comfort, it said.

HSBC Global Research initiated coverage on PB Fintech last month with a 'buy' rating and a target price of Rs 2,550. The brokerage's bullish outlook is driven by PB Fintech's dominant position in the online insurance and credit marketplace, alongside its robust growth potential and improving profitability.