Motilal Oswal cuts PB Fintech target on insurance-commission regulation risk
Motilal Oswal retained its Neutral call on Policybazaar parent PB Fintech, cutting its target price to Rs 1,150 as proposed insurance-commission rules could reduce core online insurance revenue by about 30% by FY28.
What happened
PB Fintech (Policybazaar) · Motilal Oswal retained a Neutral rating on PB Fintech and cut its target price, warning proposed insurance-commission rules could
Key facts
- 52-week low: Rs 1,131.05
- Target price cut up to 50% to Rs 1,150
- 30% potential impact on core online insurance revenue by FY28
- General insurance business NPV could fall to 35-40% of current levels
- Target valuation based on 50 times average of current and worst-case FY28 EPS
Why this matters
Strategic buyers and partners may find PB Fintech’s insurance-distribution assets more attractively valued, but should underwrite lower commission economics and heightened regulatory risk.