PB Fintech Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

A week ago, PB Fintech Limited (NSE:POLICYBZR) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 3.8% to hit ₹8.7b. PB Fintech also reported a statutory profit of ₹0.83, which was an impressive 76% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for PB Fintech

Taking into account the latest results, the consensus forecast from PB Fintech's 16 analysts is for revenues of ₹42.3b in 2025. This reflects a substantial 31% improvement in revenue compared to the last 12 months. PB Fintech is also expected to turn profitable, with statutory earnings of ₹8.87 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹42.2b and earnings per share (EPS) of ₹8.72 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.9% to ₹953. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values PB Fintech at ₹1,150 per share, while the most bearish prices it at ₹610. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PB Fintech's past performance and to peers in the same industry. It's pretty clear that there is an expectation that PB Fintech's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.1% per year. Even after the forecast slowdown in growth, it seems obvious that PB Fintech is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for PB Fintech going out to 2026, and you can see them free on our platform here..

You can also see our analysis of PB Fintech's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.