PB Fintech slides 10% post Q1 earnings. Should you buy, sell or hold?

economictimes.indiatimes.com:

PB Fintech continued on Wednesday, with the stock falling nearly 10% in the two sessions following its June quarter earnings, where the company narrowed its year-on-year (YoY) losses. On Wednesday, the stock fell 5% in intra-day trade to hit the day's low of Rs 720 on the NSE. The Q1FY24 earnings were followed by reports from top brokerages, including one from the Sydney headquartered Macquarie, which foresees an 'Underperformance' in the stock.

Among the domestic ones, Nuvama suggested a 'Hold' while Kotak Institutional Equities and JM Financial took 'Add' and 'Buy' stances, respectively. PB Fintech, which runs Policybazaar and Paisabazaar, on Monday, reported that it had narrowed its losses substantially to Rs 11.9 crore in the quarter ended June 2023. The company had reported a loss of Rs 204 crore in the year-ago quarter.

The fintech's operating revenue rose 32% YoY to Rs 666 crore in the reporting period. It was Rs 505 crore in the corresponding quarter of last year. The consolidated adjusted EBITDA was a positive Rs 23 crore for the first quarter, an improvement from the negative Rs 66 crore in the same quarter last year.Here is what top brokerages said:Macquarie: Underperform | Target: Rs 560Macquarie has initiated coverage on the stock with an 'Underperform' rating.Kotak: Add | Target: Rs 800Kotak recommended an 'Add' arguing that the Policybazaar business remains on the path to profitability to achieve its stated guidance.