1, March, 2024
HomeBusinessPB Fintech's Remarkable Resurgence: Shares Surge Beyond IPO Price Milestone

PB Fintech’s Remarkable Resurgence: Shares Surge Beyond IPO Price Milestone

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PB Fintech, the parent company overseeing Policy Bazaar and Paisa Bazaar, marked a significant milestone as its shares surpassed the IPO price per share after a two-year journey. Investors responded favorably to the company’s robust performance in Q3FY24, solidifying its position in the market.

Read Also | Infosys Q2 2023 Financial Results: What to Expect

In the recently released December quarter results, PB Fintech showcased a commendable performance in its core business, with new protection premiums experiencing a remarkable surge of 44% in health and term insurance. The core operating revenue reached ₹593 crore, reflecting a substantial 39% YoY growth. Notably, the contribution margin improved to 44% in Q3, with adjusted EBITDA rising to ₹76 crore and the margin expanding to 13%.

A noteworthy aspect is the consistent improvement in adjusted EBITDA over the last six quarters, aligning with the company’s annual guidance of incremental ₹200 crore adjusted EBITDA. The overall revenue from operations during Q3FY24 witnessed an impressive YoY growth of 43% to ₹871 crore, and the company achieved a positive adjusted EBITDA margin of 4%, showcasing a significant improvement from the -5% margin recorded in the same period last year.

PB Fintech reported a net profit of ₹37 crore in Q3, surpassing estimates and demonstrating a remarkable turnaround from the net loss of ₹87 crore in the corresponding quarter of the previous fiscal. For the first nine months of FY24, the total operating revenue surged to ₹2,348 crore, and the consolidated PAT improved by ₹482 crore to ₹4 crore.

The stock responded to these stellar Q3 results with a notable gap-up, opening at ₹963.95, a 6.20% increase from the previous close. The upward momentum continued, with the stock surpassing its IPO price of ₹980, reaching a two-year high of ₹1,020, representing an impressive gain of 12.5%.

PB Fintech’s journey has been marked by resilience and recovery. While it made a robust debut on the exchanges in November 2021, the stock faced challenges within two months, dropping below its IPO price and reaching a record low of ₹356 apiece in November 2022. Since February 2023, the company’s financials have steadily improved, leading to a consistent upward trend and culminating in the recent achievement of surpassing the IPO price.

Read Also | SoftBank Rakes in $650 Million Profit as It Fully Exits PolicyBazaar’s Parent Company

As PB Fintech continues to navigate the financial services industry, including insurance, its remarkable resurgence serves as a testament to its resilience, adaptability, and commitment to delivering value in the market.

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