Benzinga - Shares of PB Fintech (NS:PBFI) were rising on Wednesday after the firm posted its first-quarter results after markets closed the previous day.
What Happened: The company reported a swing to a net profit of ₹60 crore from an ₹11.41 crore loss in the corresponding quarter last year. The profit was aided by a one-time exceptional gain of ₹41.05 crore.
Revenue from operations rose 51% to ₹1,010.5 crore, compared with ₹666 crore a year ago. The company's total insurance premium for the quarter was ₹4,871 crore, led by growth in new health and life insurance business at 78%.
Adjusted EBITDA stood at ₹49 crore in the first quarter of this fiscal over ₹23 crore in the first quarter of the previous quarter, whereas EBITDA margin improved to 5% from 3% earlier.
Brokerage View: Morgan Stanley (NYSE:MS) had an “equal-weight” call on the stock with a target price of ₹1,125. PB Fintech's adjusted EBITDA numbers beat the brokerage's estimates.
Investors are likely to keep an eye out on the sustainability of premium momentum and pick up in credit business, Morgan Stanley noted.
Meanwhile, Jefferies held a “buy” call on the stock with a target price of ₹1,500. The brokerage said PB Fintech’s growth was strong, powered by the health segment, and exceeded expectations by 13% beat on core online premium growth, primarily due to an increase in new premiums.
The strong growth in new health premiums may have led to a slight moderation in take rates, the brokerage said. New initiatives contributed to a top-line increase with stable investments, aiding consolidated margin expansion to 5%, it added.
Price Action: PB Fintech was trading 1.51% higher at ₹1,456.50 on Wednesday morning.
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