Shares of PB Fintech Ltd, parent of Policybazaar and Paisabazaar, saw a sharp downtick in Tuesday's trade ahead of the online insurance platform's September 2024 quarter (Q2 FY25) results, which are scheduled to be released later in the day. The stock slumped 6.53 per cent to hit a day low of Rs 1,601.
JM Financial pegs the company's total insurance premium to grow 51.5 per cent YoY (year-on-year) to 5,266.2 crore, while revenue may come in at Rs 1,110.2 crore, up 37 per cent YoY and 10 per cent, sequentially. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) is seen at Rs 48.4 crore, up 275 per cent YoY and 95 per cent QoQ, with margins improving 277 basis points (bps) to 4.4 per cent. PAT (profit after tax) will likely come in at Rs 42.6 crore, up 122.6 per cent sequentially.
"We expect Policybazaar revenue to improve sequentially by 7.3 per cent in Q2, whereas Paisabazaar is expected to grow by 27.2 per cent QoQ with gradual recovery of unsecured personal loans. Overall, revenue growth is expected at 36.8 per cent YoY," said JM.
Nuvama Institutional Equities expects a strong core platform business premium growth to drive over 30 per cent of existing business revenue growth. The brokerage said PB Fintech's margins are expected to remain subdued as growth in health premiums is expected to remain strong.
Nuvama sees its revenue at Rs 1,159.1 crore, up 43 per cent YoY ad 15 per cent QoQ. EBITDA may come in at Rs 69.1 crore, zooming 132 per cent YoY and 40 per cent sequentially. Net profit may come in at Rs 65 crore, surging 243 per cent QoQ. The company had reported a net loss of Rs 21.1 crore in the year-ago period.
On the stock-specific front, around 31,000 shares were last seen changing hands on BSE today. The figure was higher than the two-week average volume of 19,000 shares. Turnover on the counter came at Rs 5.14 crore, commanding a market capitalisation (m-cap) of Rs 73,714.21 crore.
The counter traded lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 40.79. A level below 30 is defined as oversold while a value above 70 is considered overbought.
According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 3245.41 against a price-to-book (P/B) value of 10.11. Earnings per share (EPS) stood at 0.53 with a return on equity (RoE) of 0.31.