PB Fintech's stock has been on a steady ascent, marking a significant milestone by soaring 5% to reach a 52-week high following the incorporation of its subsidiary, PB Pay.

This surge in share price is emblematic of the company's upward trajectory, which has been particularly evident since its notable profitability achievement in the third quarter of FY24, boasting a PAT of Rs 37.2 crore.

The incorporation of PB Pay was greenlit by PB Fintech's promoters back in March, with a substantial paid-up capital of Rs 27 crore earmarked for the subsidiary's operations as a payment aggregator.

This strategic move underscores PB Fintech's commitment to expanding its portfolio and exploring new avenues within the fintech sector.

In an official exchange filing, PB Fintech proudly announced the establishment of PB Pay Private Limited as its wholly-owned subsidiary, with the Certificate of Incorporation being issued by the Registrar of Companies, Central Registration Centre, Ministry of Corporate Affairs, on April 9, 2024.

This development further solidifies PB Fintech's position as an innovative player in the digital payments landscape.

The recent uptick in PB Fintech's share price is not merely a reflection of the incorporation news but is also bolstered by other positive developments within the company.

A notable collaboration with ICICI Lombard to provide insurance solutions to a staggering 1 crore customers has undoubtedly captured investors' attention, signalling further diversification and expansion of PB Fintech's business verticals.

Market sentiments surrounding PB Fintech remain optimistic, with Morgan Stanley maintaining an 'equal-weight' rating on the stock and setting a target price of Rs 1,010 per share.

The recent collaboration with ICICI Lombard is viewed as a significant reinforcement of PB Fintech's business, particularly given ICICI Lombard's prolonged absence from Policybazaar's online retail platform.

Despite the favourable outlook, Morgan Stanley remains cautious, citing the company's expensive valuation as a potential dampening factor. However, this cautious stance hasn't deterred investors, with PB Fintech shares trading nearly 5% higher on the National Stock Exchange at Rs 1,367.00 as of 9:25 am.

The company's impressive financial performance in Q3FY24, coupled with its strategic initiatives and collaborations, has spurred a remarkable rally in PB Fintech's shares, which have surged over 70% year-to-date, significantly outperforming the benchmark Nifty 50 index.

Over the past year, PB Fintech has delivered stellar returns of over 130%, cementing its position as a preferred choice among investors seeking exposure to the burgeoning fintech sector.