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PB Fintech Shares Rebound Amidst Price Target Cuts by HSBC, Motilal Oswal
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CNBC TV18•25-09-2026, 09:23
PB Fintech Shares Rebound Amidst Price Target Cuts by HSBC, Motilal Oswal
- •PB Fintech shares recovered from opening lows, turning positive after a record drop, despite brokerage downgrades.
- •HSBC downgraded PB Fintech to "hold" and slashed its price target by nearly 50% to ’1,150, citing risks from proposed IRDAI regulations.
- •Motilal Oswal also cut its price target for PB Fintech to ’1,150, maintaining a "neutral" stance, expecting continued underperformance until regulatory clarity.
- •The proposed IRDAI distribution reforms, including commission caps, are expected to materially impact PB Fintech's earnings, leading to significant EPS estimate cuts.
- •PB Fintech management warned of severe revenue impact on general insurance and potential slowdown in hiring due to reduced commission attractiveness.
Key Questions Answered
HSBC and Motilal Oswal downgraded their price targets for PB Fintech to ₹1,150 following warnings that proposed draft IRDAI regulations on commission caps and distribution reforms could severely impact the company's core earnings and online insurance revenue.
PB Fintech shares suffered a record single-day crash of 36% on Thursday, plunging from a 52-week high to a 52-week low before recovering by up to 4.5% in Friday morning trade.
Along with HSBC downgrading the stock to "hold" and Motilal Oswal maintaining a "neutral" rating, Dolat Capital downgraded PB Fintech from "reduce" to "sell" and slashed its price target to ₹1,150.
