PB Fintech Stock Nosedives 6% To Reach INR 1,706.00

SUMMARY

Notably, the company’s stock has been on a downward trajectory in recent times, giving a negative return of around 19% in the last month at the current market price

Earlier this week, brokerage firm Morgan Stanley assigned an ‘underweight’ rating to PB Fintech, citing lower-than-expected profit emergence and high stock valuations

However, the stock has given a stellar performance in the larger time framework, skyrocketing 94.67% on a current market price basis over the past year

Shares of PB Fintech nosedived as much as 6% to reach INR 1,706.00 during the intraday trading seasion on the BSE today (January 17).

However, the shares recovered later, trading 5.1% lower at INR 1718.65 as of 12:20 PM. The company’s market capitalisation stood at INR 78,923.99 Cr at the aforementioned time, with as many as 11.32 Lakh shares changing hands by then.

Notably, the company’s stock has been on a downward trajectory in recent times, giving a negative return of around 19% in the last month at the current market price.

Earlier this week, brokerage firm Morgan Stanley assigned an ‘underweight’ rating to PB Fintech, citing lower-than-expected profit emergence and high stock valuations.

This was a downgrade from the stock’s previous ‘equal-weight’ rating. Morgan Stanley has set a price target of INR 1,400 for the stock, representing a 14% downside from Friday’s closing price.

Not to mention, the stock emerged as the second-biggest loser last week among 31 new-age tech stocks tracked by Inc42, with its shares dropping 16.20% weekly.

However, the stock has given a stellar performance in the larger time framework, skyrocketing 94.67% on a current market price basis over the past year.

Just three days ago, the GST department conducted a raid on a wholly-owned subsidiary of insurtech major PB Fintech for search and inquiry in connection with some of the vendors of one of its subsidiaries.

Earlier this month, on January 2, PB Fintech entered the healthcare segment through its new subsidiary, PB Healthcare Services Private Limited. Post that, its shares even touched a fresh all-time high of INR 2,254.95 on January 3.

On January 4, the company was also relieved of Commissioner of Income Tax-Appeal (CIT-A) imposed tax amounting to INR 166.12 Cr for the fiscal year 2015-16.

It is pertinent to note that the company has been doing the diversification of its core financial services business lately.

Last year, the company incorporated a subsidiary PB Pay as part of its plan to venture into the payment aggregator business.

Another of its subsidiaries, PB Financial Account Aggregator Private Limited (PBAA) received the account aggregator license from the Reserve Bank of India (RBI) in October 2024.

On the financial front, PB Fintech reported a consolidated net profit of INR 50.98 Cr in the second quarter (Q2) of the fiscal year 2024-25 (FY25) against a loss of INR 21.11 Cr in the year-ago quarter.

Notably, this was the fourth consecutive profitable quarter for the company. During this period, revenue from operations jumped over 43% to INR 1,167.2 Cr in Q2 FY25 from INR 811.6 Cr in the year-ago period.