PB Fintech Q2 Results Review - Core Business On Strong Growth Tack; POSP Revives Back: Dolat Capital

Dolat Capital Report

PB Fintech Ltd. reported revenue growth of 22% QoQ (our estimate: 9.3%) led by both core online and new initiatives business which grew 16%/44% QoQ driven by traction in protection offerings and strong rebound in point of sales person business (up 56% QoQ). 

Adjusted Ebitda margin declined by 190 basis points QoQ to 1.6% (our estimate: 4.4%) due to higher marketing/team cost, traction in low contribution margin operations (POSP and health product (although net present value is very good in health). 

PB Fintech remained confident of growing two- three times of industry growth and remained confident of positive profit after tax for FY24 and expects to 'Add' Rs. 2 billion plus of adjusted Ebitda every year hereon (retained Rs 10 billion PAT guidance for FY27).

Continued strength in both insurance and credit business, improving profitability reiterates our positive stance.

Maintain 'Buy' with target price of Rs. 1,100 (implies eight times on FY26E enterprise value/sales).

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