PB Fintech Limited (NSE:POLICYBZR) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

Last week, you might have seen that PB Fintech Limited (NSE:POLICYBZR) released its full-year result to the market. The early response was not positive, with shares down 5.1% to ₹664 in the past week. Revenues were a bright spot, with ₹14b in sales arriving 8.5% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of ₹20.34, some 2.0% below consensus predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for PB Fintech

Following the latest results, PB Fintech's six analysts are now forecasting revenues of ₹21.1b in 2023. This would be a major 48% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 23% to ₹14.29. Before this latest report, the consensus had been expecting revenues of ₹19.5b and ₹14.73 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.

Despite these upgrades,the analysts have not made any major changes to their price target of ₹899, implying that their latest estimates don't have a long term impact on what they think the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on PB Fintech, with the most bullish analyst valuing it at ₹1,000 and the most bearish at ₹800 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting PB Fintech's growth to accelerate, with the forecast 48% annualised growth to the end of 2023 ranking favourably alongside historical growth of 30% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that PB Fintech is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PB Fintech going out to 2025, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.