Shares of PB Fintech, listed on the NSE, traded 2% higher at ₹1,188 after peaking 4% earlier on Monday, September 28, following a sharp 36% decline on Thursday and a 4% drop on Friday.
Bernstein retained its 'outperform' stance, projecting a 91% upside and setting a new price target of ₹2,300, a dramatic lift from the ₹1,150 level that HSBC and Motilal applied after slashing their targets.
Kotak Institutional Equities downgraded its target to ₹1,400 from ₹1,875, citing commission caps that could trim the digital business take rate by 35%–40%. Investec, which had previously pegged the stock at ₹2,500, trimmed its target to ₹1,425, warning that IRDAI draft norms could delay profitability by two years and halve insurance revenue.
Amid these revisions, Investec slashed its FY28 and FY29 PAT estimates by 76% and 56% respectively, while noting that PB Fintech’s cost‑levers—particularly advertising and promotion—might cushion the regulatory hit. Analysts remain split: 16 buy, 5 hold, 4 sell, reflecting uncertainty over the company’s ability to navigate the evolving insurance‑distribution landscape.
Going forward, the stock’s trajectory will hinge on the IRDAI’s final stance on draft norms and the company’s execution of cost‑cutting measures. A favorable regulatory outcome or a successful shift to a low‑cost digital model could unlock upside, but any delay or dilution in product pricing may dampen investor sentiment.