shares of
parent of On Monday, the day after the company released its March quarter (4th quarter 2023) figures, the NSE was up by as much as 5%.The company’s scrip was trading at Rs654.35 per contract on NSE and Rs654.35 per contract on BSE in early trading on Tuesday, with a previous close of Rs619.05.
But while the stock got off to a good start, it gave up on its initial rally. The stock fell quickly from its early highs, trading at 616.23 rupees on the NSE at 11:23 am Tuesday, down 0.46% from the previous day’s close.
The earnings release showed that the insurance aggregator reduced its PAT loss for the quarter to Rs.9.34 billion from Rs.219 million in the same period last year.
Overall, the consolidated loss for the year was Rs.487.93 million, almost halved compared to Rs.832.9 million for the previous financial year.
The company’s management had instructed the company to achieve profitability in fiscal 2024.
In the same quarter, the company’s operating revenue increased by 61% year-on-year (YoY) to Rs.869 million, ending the full year at Rs.2557.84, registering growth of around 80% over FY2022.
The company said its existing business has been EBITDA positive for more than a year and Paisabazar alone has been EBITDA positive since December 2022. Meanwhile, Adjusted EBITDA loss from new initiatives decreased to Rs.36 billion.
Overall, the company claims to have achieved breakeven with Consolidated Adjusted EBITDA of Rs 28 billion for the three months to March.
CLSA maintained its ‘Outperform’ recommendation and raised its price target on the stock to 720 rupees from 710 rupees.
Morgan Stanley affirmed the stock’s rating at ‘overweight’ with a price target of 810 rupees per share, while Citi raised the price target to 820 rupees with a buy call on the stock.