Shares of PB Infotech rose 8.4 percent on Friday after the company’s CEO Yashish Dhaiya stated his goal for the company, which is to achieve ₹1000 crore in profit after tax (PAT) by 2027.
“Let us get to positive cash flows of at least ₹100 crores a quarter, ₹400 crores a year and we are just four-five quarters away. So let us just deliver that and once we have delivered that then let us re-assess what should be our capital strategy,” he said, in an interview with The Economic Times.
During Friday’s trade, the stock opened at a price of Rs. 521.35 per share, closely against the previous close of Rs. 521.25 per share and grew during the early trading session to touch an intraday high of Rs. 565.20. It was trading at ₹563.25, up by 8.04 percent, at 11:15 a.m. on the BSE.
The stock touched a 52-week high of Rs. 825.05 on April 06, 2022 and a 52-week low of Rs. 356.20 on November 17, 2022, indicating that at the current level, the stock is trading over 58 percent above its 52-week low and 31 percent below its 52-week high.
The stock has grown nearly 34 percent in the last one month. In the past six months, it has given a positive return of almost 10 percent. However, the stock has declined over 15 percent in the last one year.
When asked about how he came down at this specific number, the CEO stated, "Our new initiative losses are coming down and it is expected by 2027 they would break even so they will be at zero. Our core business is already positive.”
“It has already made ₹100 crores of positive EBITDA this year and the ESOP part is going to disappear because that is a notional charge which you are seeing right now but that will not be there after 5 years. You put all of that together and there is no way you will come out with a different number,” Dhaiya mentioned.
In its third quarter of fiscal year 2023, the financial services platform reported a 66% year-on-year (YoY) increase in revenue from operations to ₹610 crore. This was accompanied by a narrowing of its consolidated loss to ₹87 crore from ₹298 crore in the same period of the previous fiscal year.
The company attributed this performance to its credit business breaking even in December, ahead of expectations of achieving it in Q4FY23. Furthermore, the company's EBITDA grew to ₹164 crores for the first nine months of the year and the management is confident of being adjusted EBITDA-positive for Q4 this year and delivering the first full year of PAT in 23-24.
Domestic Brokerage firm ICICI Securities has maintained a 'buy' rating on the stock while increasing its target price to ₹600 per share from ₹550 earlier, Moneycontrol reported.
PB Fintech provides an online platform for insurance and lending products by leveraging the power of technology, data and innovation. The company is engaged in providing online marketing, consulting and technology services to insurer and lending partners. The company offers Policybazaar and Paisabazaar platform that addresses the online insurance and lending markets.
According to a MintGenie poll, 12 analysts on an average have a ‘STRONG BUY’ call on the stock.
