PB Fintech shares drop over 10% on plans of healthcare foray

In an exchange filing clarifying the news, PB Fintech stated, “We believe that if claims processes were quicker and smoother, it would increase the number of people purchasing health insurance. It would be much better if the interests of insurers and hospitals were aligned to provide customers with an exceptional claims experience, which we believe would enhance insurance penetration.”

The company further said, “We continue to explore, but have no decisions to update at the moment. A decision if and when arrived will be informed to the stock exchanges.”

At 11:16 am, the stock was trading 5.7% lower at Rs 1,623 on BSE. The multibagger stock has delivered 117% returns over the past one-year period while returns in 2024 so far have been to the tune of 103%. This is a significant outperformance over Sensex, which has yielded 26% in the last one year while returning 16% on a year-to-date basis.

The company had reported a consolidated net profit of Rs 60 crore for the quarter ended June 30, 2024, against a loss of Rs 12 crore reported in the year-ago period. The revenue grew 52% YoY to Rs 1,010 crore.

Policybazaar has a 93% market share among online aggregators and the insurance arm has issued 44.3 million insurance policies to date. The total transacting consumers stand at 17.4 million along with 51 insurance partners to date.Technically, the relative strength index (RSI) of the stock is currently at 46.9. An RSI below 30 is considered oversold, while above 70 is overbought, according to Trendlyne data. Additionally, the MACD is at 65.1, which is above its center line, but below the signal line.The stock is trading lower than the 5-day, 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs), while higher than 100-day, 150-day, and 200-day SMAs.

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