Neutral PB Fintech; target of Rs 1150: Motilal Oswal

The latest market report highlights that Motilal Oswal's research report on PB Fintech

In our initiating coverage report on PB Fintech, released in Nov’25 (https://tinyurl.com/2pef7mk6), we highlighted regulatory tightening of commissions as a key risk to the firm’s future topline visibility. The consultation paper released yesterday recommends significant changes to commissions. PB Fintech hosted a call to discuss the implications and indicated that, if implemented as proposed, the changes could result in a potential 30% hit to FY28 core online insurance topline. If we trimmed our FY28 core online insurance topline estimates by 30%, without factoring in any adjustments to expenses or additional topline streams highlighted by the firm, our earnings estimates would slide by 46%. On these earnings, the stock would trade at 73x. Assuming the firm is able to trimmed down its employee and advertisement costs by 20% compared to current assumptions, the earnings trimmed would be around 30% and the stock would trade at 57x. Until the final regulations are announced, we believe the stock would keep underperform.

We reiterate our Neutral rating with a revised TP of INR1,150, based on 50x average of the current and worst-case FY28 EPS.

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