Citi maintains buy rating on PB Fintech stock citing health insurance growth

Published 05/06/2025, 11:34
Citi maintains buy rating on PB Fintech stock citing health insurance growth

On Thursday, Citi analysts reiterated a Buy rating and an INR2,185.00 price target on PB Fintech (NSE:PBFI) Limited (POLICYBZ:IN). The decision reflects the company’s robust performance in the retail health insurance segment, which has shown over 65% year-on-year growth quarter-to-date.

Citi analysts highlighted the company’s strategic position in the POSP (Point of Sale Person) market, noting that recent mergers among top players like InsuranceDekho and RenewBuy, along with potential listings from large competitors such as Turtlemint, are expected to drive market consolidation and pricing rationality in the sector. The POSP segment contributed approximately 25-30% to PB Fintech’s consolidated revenue for the fiscal year 2025.

The analysts pointed to a sustained momentum in fresh retail health insurance growth since fiscal year 2024, supported by investments in claims processing and alignment with health insurers, which have resulted in favorable claim settlement ratios. They believe these factors will continue to support the company’s market share in the health insurance sector.

Additionally, the transition of PB Fintech’s savings business towards pension products is seen as potentially yield accretive, offering upside risks to the company’s financial performance. The analysts remain optimistic about the company’s future profitability and growth prospects.

Citi’s positive outlook on PB Fintech is based on their analysis of the company’s strategic initiatives and market dynamics, which are expected to benefit investor sentiment and enhance profitability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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