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On Track To Profitability, Policybazaar Shares Surge

PB Fintech, India’s leading insurance and lending products provider, launched Policybazaar with a vision to cater to customers with transparent insurance policies. The fintech company provides an array of services and continuously growing. The Policybazaar shares have increased by 2% to ₹ 545  per equity share after the company’s net losses narrowed down to ₹ 87 crores during the third quarter of FY23. As per the reports, the losses of the Indian insurance aggregator in the third quarter of FY22 were ₹ 298 crores. The total revenue of the fintech firm has increased by 66% to ₹ 610 crores when compared with the previous year. Currently, Policybazaar’s share in the online insurance market is more than 90%, and it is continuously gripping the offline market. 

The market experts also stated that there would be a sharp profitability uptick in the fourth quarter with the company’s exponential growth. Continuing the series, the parent company of Policybazaar, PB Fintech, also reported strong numbers for the third quarter of the ongoing financial year. In terms of revenue, PB Fintech has been consistently beating JM Financial over the last three-quarters of FY23. The amazing financial stats of the company has been drawing potential investor attention who seek an opportunity to benefit the market.

Why Are Policybazaar Share Prices Increasing?

By the end of 2022, Policybazaar’s share prices were continuously falling before the lock-in period ended. However, after that period, the fintech giant bounced back and shared that its parent company PB Fintech delivered more than 25% returns in the share market. The amazing returns resulted from the company’s consistent growth in the last three quarters. 

In response to the share price surge AK Prabhakar, Head of Capital, IDBI Capital, said: “Shares of Policybazaar surged in response to IRDAI’s comments. The insurance regulator has issued draft norms to remove specific caps on commissions to agents. The cap removal would help insurance companies sell more products, which is why PB Fintech (Policybazaar’s parent) is also rising.

SoftBank sold its 5.1% stake worth Rs 1,043 crore in PB Fintech, the parent company of Policybazaar, in an open market transaction. Post selling the stake, SoftBank’s share in the fintech company shrank to 5.06 per cent, which earlier was 10.16 %. Due to the offloading of stakes, the share pieces of Policybazaar spiked by 5.21%.

PB Fintech was a loss-making company, but it bounced back in FY22-23. In the second quarter, the company reported a decline in net loss to ₹186.50 crores, earlier ₹204.40 crores. Reduced net losses drove more business to the Indian insurance aggregator. In the September quarter, the company’s revenue doubled to ₹ 573.50 crores from ₹ 279.6 crores in the same quarter of the previous year.

The insurance aggregator’s initial public offering (IPO) was issued in November 2021 at a price of ₹ 980. After the mandatory lock-in period ended, the big investors offloaded their stakes from the company. Due to this, the stock prices started falling even before the lock-in period ended. But, after that, the share prices considerably increased and even gave more than 25% returns to the investors.

Financial Stats Of Policybazaar

The following table depicts the profits & losses of Policybazaar; all figures are in crores.

Net sales79.1549.9561.11123.42103.18
Total expenditure122.1389.4289.27143.61512.60
Operating profit-42.98-39.47-28.16-20.18-409.42
Other income24.6634.1386.8856.02114.25
Exceptional items00-29.16-2.370
Profit before tax-21.226.3818.9327.33-300.25
Net profit-46.73-15.819.7419.01-299.68 

As per the financial stats, the net sales of the Indian insurance company have constantly increased. Along with the net sales, earnings from other income sources have also spiked in the last five years. Furthermore, the company’s consistent growth has resulted in a surge in its share prices by 12% in the first quarter of 2023.

Stay Updated With Policybazaar Shares Using Stockify

As a growing fintech firm, Policybazaar’s shares can offer you high returns on minimal investments. The highest recorded price of PB Fintech was ₹ 950 per equity share, while the average share price was ₹ 706.7 per equity share, which signifies a spike of 23%. Investing in a rapidly growing firm like Policybazaar is the best way to begin your investment journey and diversify your portfolio.

But where can you find the Policybazaar share prices and IPO details and begin investing? For that, you can use Stockify. Connect with India’s best online trading and brokerage platform experts and make your investment journey hassle- and risk-free.

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