Motilal Oswal has initiated coverage on PB Fintech with a ‘Neutral’ rating. The brokerage kept the target price at Rs 2,000, implying an upside of 10% from the current market price. PB Fintech is a compelling platform story that provides exposure to both near-term growth and long-term disruption across India’s largest household financial products, insurance and credit.
Motilal Oswal on PB Fintech: Dominance in digital financial marketplaces
The brokerage said that the company is known as a dominant digital marketplace in both insurance and consumer credit. These sectors gain advantage from increasing financial literacy, digital advancement, and considerable under-penetration in India. In particular, the company commands around a 90% market share in the online insurance distribution space (Policy Bazaar).
Motilal Oswal on PB Fintech: Rapidly scaling presence in insurance distribution
The company has quickly enhanced its importance as a mainstream distribution channel. Its market share of total industry premiums has significantly increased, climbing from 1.3% in FY20 to an expected 3% in FY25. This notable growth highlights the platform’s rising importance.
Motilal Oswal on PB Fintech: Achievement of operational profitability
The business has successfully transitioned from a high-growth phase to a high-quality model, achieving positive adjusted EBITDA for Policy Bazaar and Paisa Bazaar. Motilal Oswal said that this provides clear visibility into self-sustaining cash flows and unit economics.
Motilal Oswal on PB Fintech: Margins to rise significantly
Apart from that, PB Fintech is well-positioned for long-term margin expansion, driven by operating leverage in the core business and stabilisation of early-stage investments. Motilal Oswal expects the consolidated EBITDA margin to expand significantly, from 2% in FY25 to approximately 13% by FY28. This expansion is supported by the compounding effect of the high annuity base and strong renewal economics.