PB Fintech Limited

Financial Services — Insurance Brokers · NSE

₹1,070.00−₹9.40 (−0.87%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of PB Fintech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PB Fintech Limited operates an online marketplace for insurance and lending products in India and the United Arab Emirates. It operates through two segments, Insurance Broker Services and Other Services.

IndustryInsurance Brokers

SectorFinancial Services

Employees28,014

Annual revenue₹6,794 Cr

How does it make money?

Turns over ₹6,794 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 28,014 employees supports ₹24.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹24.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD, ICICI PRU LIFE INS CO LTD, ICICI LOMBARD GIC LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.6%

What is the outlook?

18 analysts covering the stock expect revenue to grow about 10.8% and earnings to grow about 35.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.8%

Est. earnings growth+35.3%

Analysts18

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +166% while net margin moved -152% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+166%

Margin effect-152%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 66.5x is demanding — it needs sustained high growth to justify
✓ P/E is 72% below its own historical median of 238.4x — cheap by its own standards
✗ P/B of 6.76x is a steep premium to book

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

66.5x

2Y Median

238.4x

28 monthly readings · mean 621.2x · range 73.6x–1454.4x

Sector Median

47.6x

median of 4 sector peers

🟢Current valuation is approximately 72% below its 2y median of 238.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 40% above the peer median of 47.6x.

vs. its own history

Cheap

238.4x median over 28 months · -72%

vs. sector peers

Expensive

47.6x median of 4 peers · +40%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

58.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -17.1% to 12.3% over 3 years.
Return on equity is rising
ROE has improved from -8.9% to 9.2%.
Return on capital is rising
ROCE has improved from -8.2% to 9.7%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -17.1% to 12.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 72% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 40% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 29% a year✓ 38.5% CAGR
Latest reported year was 40.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 9.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 238.4x✓ 66.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹49,445 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

66.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.76x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹16.08

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

9.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.92x

High

High leverage

Revenue Growth (YoY)

40.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

92.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

34.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.3%

Average

Average margins

Net Margin

10.2%

Good

Strong bottom-line conversion

Current Ratio

4.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1213.0 / 1551.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,558 Cr	₹3,438 Cr	₹4,977 Cr	₹6,794 Cr	+38.5%
EBITDA	-₹438 Cr	₹155 Cr	₹448 Cr	₹838 Cr	—
EBITDA Margin	-17.1%	4.5%	9.0%	12.3%	—
PAT (Net Profit)	-₹487 Cr	₹67 Cr	₹352 Cr	₹670 Cr	—
EPS	₹-10.97	₹1.45	₹7.63	₹14.46	—
ROE	-8.9%	1.1%	5.5%	9.2%	—
ROCE	-8.2%	1.7%	6.2%	9.7%	—
Total Debt	₹227 Cr	₹253 Cr	₹322 Cr	₹360 Cr	+16.7%
Free Cash Flow	-₹365 Cr	-₹55 Cr	-₹280 Cr	-₹38 Cr	—

🟢 Revenue has grown at 38.5% a year over 3 years.

🟢 EBITDA has turned positive, from -₹438 Cr to ₹838 Cr.

🟢 EBITDA Margin has risen from -17.1% to 12.3% over 3 years (+29.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹487 Cr to ₹670 Cr.

🟢 EPS has turned positive, from ₹-10.97 to ₹14.46.

🟢 ROE has risen from -8.9% to 9.2% over 3 years (+18.1 pts).

🟢 ROCE has risen from -8.2% to 9.7% over 3 years (+17.8 pts).

🔴 Total Debt has grown at 16.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8,707 Cr

Total Liabilities

₹1,389 Cr

Cash & Equivalents

₹746 Cr

Operating Cash Flow

₹41 Cr

Capex

-₹80 Cr

Shareholding (proxy)

Institutional Holding

60.6%

Insider Holding

22.2%

Corporate Actions

Next Earnings

29 Oct 2026

Analyst Consensus

Recommendations

15 Buy · 6 Hold · 4 Sell

Target Price (Mean)

₹1,644.48

+53.7% vs CMP

Target Range

₹1,085 – ₹2,305

Peer Comparison

Company	P/E	ROE
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%
ICICI PRU LIFE INS CO LTD	36.7x	12.9%
ICICI LOMBARD GIC LIMITED	33.0x	13.6%

Recent News

4 mixed2 general

Caught Out By PB Fintech's Slide? Here's What Bears Saw

Simply Wall Street, 15 Oct

PB Fintech share price target gets a 31% cut from Nomura - Here's why - CNBC TV18

LinkedIn, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

PB Fintech shares crash 36% to hit 18-month low on IRDAI's proposals; should you buy, sell or hold?

Moneycontrol.com, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

PB Fintech extends losing streak to 7 sessions, stock hits 32-month low

The Economic Times, 06 Oct

Bloodbath for PB Fintech shares! Stock down 5% after 36% fall yesterday; IRDAI’s overhaul move spooks in

The Times of India, 25 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Insurance Stocks Crash: PB Fintech, HDFC Life, Max Financial Shares Fall as IRDAI Proposes Dark Pattern Ban

India Infoline, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 4 tripwires holding · see Key things to watch ↑