Shares of PB Fintech broke a two-day losing run and jumped as much as 7% to a new 52-week high after the company disclosed corporate expansion objectives with analysts in its first virtual meeting since listing.
On the NSE, the stock reached a 52-week high of Rs 705.45, supported by volumes of more than 3 million shares, which was higher than the six-month average trading volume of 2 million shares.
The stock has recovered more than 80% from its February low of Rs 391. Data show that more than 60% of total traded volumes were marked for delivery, indicating that there is significant conviction buying in the counter.
The company, which owns the Policybazaar platform, wants to overcome market gaps through the use of data and technology and revealed some of its plans during the analyst meeting.
Approximately 80% of Policybazaar's traffic is organic, providing it with high-intent customer data.
According to analysts, this data enables Policybazaar to offer novel and tailored goods, hence extending India's addressable market.
According to analysts at IIFL Securities, Policybazaar's substantial use of technology and in-house risk management process enables it to give superior consumer profiles to its insurance partners.
"We believe this is a key advantage for PB Fintech in underpenetrated markets," the brokerage added, expecting 20% annual revenue growth for FY23-26.
According to Kotak Institutional Equities, product innovation would help the company develop faster than the industry. PB Fintech presently accounts for 20% of India's overall term market.
The (analyst) meeting reinforced our conviction in PB's domain capabilities that will keep it ahead of peers, Kotak Equities said, reiterating its bullish position on the company.
