PB Fintech shares slip 7% after Morgan Stanley’s downgrade to ‘Underweight’
PB Fintech, the parent company of Paisabazaar and Policybazaar, tumbled 6.7% in Monday’s intraday trade to a low of Rs 1,730.50 after global brokerage firm Morgan Stanley downgraded PB the stock’s rating to «Underweight» with a target price of Rs 1,400.
Morgan Stanley has previously assigned an «Equal Weight,» rating to the stock. Additionally, the stock's target price indicates a potential for a 24% downside from Friday's closing price.
The downgrade comes as the brokerage firm expressed concerns about the company's valuation, particularly its FY27 EV/adjusted EBITDA, which is estimated to be around 65x.
Another key concern raised by Morgan Stanley is that PB Fintech's profit emergence has been weaker than initially anticipated. This slower-than-expected progress towards profitability is a significant factor contributing to the downgrade.
The brokerage firm acknowledged that the stock's recent outperformance has been linked to strong core new business premium growth, which exceeded 60% in the first half of FY25 (1HF25). However, Morgan Stanley anticipates that this growth will moderate in FY26, leading to a potential derating of the stock.
Stock Trading
Masterclass on Value Investing and Company Valuation
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time Options Trader
Stock Trading
Technical Analysis for Everyone — Technical Analysis Course
By — Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities
Stock Trading
Stock Markets Made
