PB Fintech’s shares surged by over 5% on April 10, reaching a 52-week high of Rs 1,400.35 on the NSE, buoyed by the incorporation of a new subsidiary.
In an exchange filing, the company announced the establishment of PB Pay Private Limited, a wholly-owned subsidiary, following the issuance of a certificate of incorporation by the Registrar of Companies, Central Registration Centre, Ministry of Corporate Affairs, dated April 9, 2024.
This move follows the approval granted by PB Fintech’s promoter in March for the incorporation of PB Pay, which is set to operate as a payment aggregator with an initial paid-up capital of Rs 27 crore.
The significant uptick in PB Fintech’s share price is further fueled by its recent collaboration with ICICI Lombard, wherein the insurance tech company partnered with ICICI Lombard to extend insurance solutions to 1 crore customers.
Morgan Stanley maintains an ‘equal-weight’ rating on PB Fintech, setting a target price of Rs 1,010 per share. Despite ICICI Lombard’s recent entry onto Policybazaar’s platform, which is seen as a positive reinforcement for PB Fintech’s business by investors, the brokerage remains cautious due to the company’s high valuation.
As of 9:25 am, PB Fintech shares were trading 4.9% higher at Rs 1,367.00 on the National Stock Exchange. The stock has witnessed an upward trend since it turned profitable in Q3FY24, reporting a PAT of Rs 37.2 crore. Since the announcement of its Q3 earnings on January 30, PB Fintech shares have surged by approximately 50%.
Year-to-date, PB Fintech shares have rallied over 70%, outperforming the benchmark Nifty 50’s 4.4% increase. Over the past year, the stock has delivered impressive multibagger returns of over 130%.
Disclaimer: The information provided by Bystox regarding stock market activity is intended for informational purposes only and should not be interpreted as investment advice. Readers are strongly advised to seek guidance from a qualified financial advisor prior to making any investment decisions.