PB Fintech Rated 'Neutral' By Motilal Oswal On Coverage Initiation — Details Inside

The core strength of PB Fintech lies in its high annuity base (Rs 82 billion of annualized renewal revenue in Q4 FY25), a growing base of transacting users, and strong tech-led operating leverage, which together drive a powerful flywheel of customer retention, upselling, and partner monetization..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.We initiate coverage on PB Fintech Ltd. with a Neutral rating and a one-year target price of Rs 2,000 on the basis of DCF-based valuation (implying Sep’27E EV/Ebitda multiple of 58x)..We believe PB Fintech holds a strong position in two of India’s most underpenetrated financial services segments, complemented by embedded optionality from new initiatives that offer further long-term convexity. We expect consolidated revenue to post a 35% CAGR over FY25-28, driven by a sustained momentum in core online businesses and the monetization of new verticals. Adjusted Ebitda margins are expected to expand meaningfully, from 2% in FY25 to 13% by FY28, driven by operating leverage in the core business and stabilization of early-stage investments. We expect PB Fintech to post a strong FY25-28 revenue/Ebitda/PAT CAGR of 35%/156%/56%, factoring in a strengthening position in the under-penetrated credit and insurance industries. However, we believe the stock is fairly valued, and all the positives are priced in at current levels. The possibility of commission restructuring by insurance companies due to the loss of input tax credit post GST exemption, poses a key risk for the company’s top-line growth.  .Rising competition from both digital-first players and incumbent insurers’ direct channels could erode market share. Additionally, any cut in distributor commission due to the loss of input tax credit post GST exemption could impact revenue growth. However, stronger persistency and renewal monetization in PLB could drive earlier-than-expected margin expansion. Faster digital adoption in insurance and lending may accelerate market share gains..Click on the attachment to read the full report:.India Mutual Fund — Passive Investing Gains Traction; CAMS, Nuvama Among Motilal Oswal's Top Bet.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PB Fintech Rated 'Neutral' By Motilal Oswal On Coverage Initiation — Details Inside

Rising competition from both digital-first players and incumbent insurers’ direct channels could erode PB Fintech's market share, says Motilal Oswal.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP