⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
POLICYBZR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.0
| Stock Code | POLICYBZR | Market Cap | 74,989 Cr. | Current Price | 1,619 ₹ | High / Low | 1,978 ₹ |
| Book Value | 176 ₹ | Dividend Yield | 0.00 % | ROCE | -0.03 % | ROE | -0.03 % |
| Face Value | 2.00 ₹ | DMA 50 | 1,746 ₹ | DMA 200 | 1,753 ₹ | Chg in FII Hold | -2.87 % |
| Chg in DII Hold | 2.91 % | PAT Qtr | 0.69 Cr. | PAT Prev Qtr | 7.22 Cr. | RSI | 37.0 |
| MACD | -44.4 | Volume | 15,48,897 | Avg Vol 1Wk | 16,32,206 | Low price | 1,311 ₹ |
| High price | 1,978 ₹ | Debt to equity | 0.00 | 52w Index | 46.2 % | Qtr Profit Var | -87.2 % |
| EPS | 0.13 ₹ | Industry PE | 28.7 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT fell sharply from ₹7.22 Cr. to ₹0.69 Cr. (-87.2%), showing weak profitability. EPS at ₹0.13 remains negligible.
- Return Metrics: ROE at -0.03% and ROCE at -0.03% highlight poor capital efficiency and negative returns.
- Debt Position: Debt-to-equity ratio at 0.00 indicates a debt-free balance sheet, but losses limit financial strength.
- Cash Flow: No dividend yield (0%), reflecting absence of shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negligible earnings.
- P/B Ratio: Current Price ₹1,619 vs. Book Value ₹176 → ~9.2, trading at a steep premium despite weak fundamentals.
- PEG Ratio: Not available, limiting growth-adjusted valuation clarity.
- Intrinsic Value: Current valuation appears speculative; intrinsic value likely lower than market price given poor profitability.
💻 Business Model & Competitive Advantage
- Policybazaar operates as an online insurance and financial services aggregator, benefiting from India’s digital adoption and rising insurance penetration.
- Competitive advantage lies in brand recognition, large customer base, and digital-first distribution model.
- Profitability challenges and high operating costs remain key concerns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Risk-tolerant investors may consider accumulation near ₹1,300–1,400, closer to 52-week low.
- Long-Term Holding: Suitable only for speculative investors betting on digital insurance adoption; fundamentals do not support strong long-term holding at current valuation.
Positive
- Debt-free balance sheet ensures financial stability.
- DII holdings increased (+2.91%), showing strong domestic institutional support.
- RSI at 37.0 indicates stock is near oversold territory, potential for short-term rebound.
Limitation
- Quarterly PAT fell sharply (-87.2%).
- Negative ROE (-0.03%) and ROCE (-0.03%).
- P/B ratio at ~9.2 indicates steep premium valuation.
- No dividend yield, limiting investor returns.
Company Negative News
- Sharp decline in quarterly profits.
- FII holdings reduced (-2.87%), showing lower foreign investor confidence.
- MACD negative (-44.4), signaling bearish momentum.
Company Positive News
- DII holdings increased significantly (+2.91%), reflecting domestic institutional trust.
- Debt-free balance sheet provides resilience.
Industry
- Fintech/insurance industry P/E at 28.7, but Policybazaar has no meaningful P/E due to negligible earnings.
- Sector outlook supported by rising insurance penetration and digital adoption, though profitability remains a challenge.
Conclusion
- Policybazaar shows strong brand presence and industry positioning but suffers from weak profitability and overvaluation.
- High multiples and negative returns make it unattractive for conservative investors.
- Best considered for speculative entry near ₹1,300–1,400, with cautious outlook until profitability improves.
I can also build a side-by-side comparison of Policybazaar with other fintech/insurance peers to highlight valuation, profitability, and growth potential. Would you like me to prepare that next?