New signs of unsecured lending following the central bank crackdown have seen PB fintech shares soar, making Indian stocks the world’s best-performing among major financial technology companies this year.
The company’s shares are up about 110% so far this year, the biggest gain among companies with market capitalizations over $1 billion in the 52-company Solactive Fintech Index. The index, which includes Intuit and Fiserv as key components, is up 15%.
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PB Fintech’s consolidated net profit for Q1 is Rs 599.8 crore
The unsecured lending business, which had slowed due to Reserve Bank of India regulations, “seems to have bottomed out and is gradually starting to pick up,” Yashish Dahiya, CEO of PB Fintech Group, said in an interview.
PB Fintech, which runs insurance marketplace Policy Bazaar and credit provider Paisa Bazaar, listed in 2021 and turned a profit in the 12 months to March after several years of losses.
Sabi Jain, co-founder of portfolio management service 2Point2 Capital Advisors, said challenges his firm currently faces include efforts from regulators to commoditize protection products and competitors looking to build their own direct-to-consumer online channels.
PB Fintech has eight analyst ratings, seven with buy recommendations and four with sell recommendations, according to data compiled by Bloomberg, and an average 12-month target price of 1,485 rupees ($17.7), about 11% lower than the current share price.
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