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Bernstein Projects 91% Upside for PB Fintech Despite Regulatory Headwinds
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CNBC TV18•28-09-2026, 09:41
Bernstein Projects 91% Upside for PB Fintech Despite Regulatory Headwinds
- •Bernstein maintains an "outperform" rating on PB Fintech with a price target of ’2,310, implying a 91% upside from Friday's closing price.
- •PB Fintech shares fell sharply by 36% and 4% on Thursday and Friday, respectively, following draft IRDAI guidelines on distribution norms.
- •The proposed IRDAI framework could lead to a 40% reduction in insurance take rates for PB Fintech, potentially cutting consolidated revenue by 36% in FY28.
- •Bernstein's analysis suggests a 34% cut to PB Fintech's FY28 profit after tax (PAT) estimates, with recovery projected by FY30.
- •Management indicated room to rationalize growth-linked costs in FY28, including call-center hiring and marketing spends, to mitigate impact.
Key Questions Answered
Bernstein maintained an "outperform" rating on PB Fintech with a price target of ₹2,310, projecting a potential 91% upside from its previous closing price.
The proposed draft guidelines caused PB Fintech shares to plummet by a record 36% on Thursday and an additional 4% on Friday, pushing the stock below its listing price of ₹1,150.
Bernstein estimates that the framework implies a 40% reduction in insurance take rates, translating to a 36% cut in consolidated revenue and a 34% reduction in profit after tax estimates for financial year 2028.
