Adrian JohnsonTLDR:
PB Fintech shares have crossed their IPO price of ₹980 after two years, following the company’s first-ever quarterly profit. The stock had fallen below its IPO price in January 2022 and hit an all-time low of ₹356 in November of that year. However, the stock has rebounded since then and is now 33% below its all-time high of ₹1,470. PB Fintech reported a net profit of ₹37 crore in the December quarter, compared to a loss of ₹87 crore in the same period last year. The adjusted EBITDA margin for the quarter stood at 4%, compared to a negative margin in the year-ago quarter.
Brokerage firm Morgan Stanley has maintained its overweight stance on the stock with a price target of ₹965, but warns of potential downside risks to near-term forecasts. Macquarie has also maintained its underperform rating on the stock with a price target of ₹610. Out of the 17 analysts that track PB Fintech, 12 have a “buy” rating, two say “hold,” and three have a “sell” call. Shares of PB Fintech are currently trading 10% higher at ₹1,001.
Key Points:
- PB Fintech shares crossed their IPO price of ₹980 after reporting a net profit of ₹37 crore in the December quarter.
- The stock had fallen below its IPO price in January 2022 and hit an all-time low of ₹356 in November of that year.
- Adjusted EBITDA margin for the quarter was 4%, compared to a negative margin in the year-ago quarter.
- Morgan Stanley has maintained its overweight stance on the stock with a price target of ₹965.
- Macquarie has maintained its underperform rating on the stock with a price target of ₹610.
Disclaimer: The information provided here is for informational purposes only and should not be construed as financial or investment advice. The article was originally published on CNBCTV18.