POLICYBZR - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📈 Fundamental Stock Analysis: Policybazaar (POLICYBZR) Rating: 3.2

🧾 Core Financial Strength

Profitability & Return Metrics

ROE: 5.13% and ROCE: 5.90% are relatively weak, showing low capital efficiency.

EPS is ₹7.69 — modest at best for its valuation level.

Debt & Liquidity

Debt-to-Equity ratio is low at 0.05, reflecting financial prudence.

Dividend Yield is 0.00% — no passive income for shareholders.

Earnings Momentum

Strong PAT growth: ₹171 Cr from ₹71.5 Cr — 183% jump, suggests aggressive earnings expansion, potentially cyclic or boosted by one-offs.

💰 Valuation & Market Indicators

Indicator Value Interpretation

P/E Ratio 260 Extremely overvalued vs. Industry PE (49.9)

P/B Ratio ~12.8 Suggests market pricing in high expectations

PEG Ratio 7.77 Implies unsustainable premium based on growth

RSI & MACD RSI 46.1, MACD -10.2 Weak momentum; potential near-term correction

DMA Comparison Price below DMA 50, above DMA 200 Neutral bias with mild support near ₹1,700–₹1,750

🧠 Business Model & Competitive Position

Overview: Policybazaar is India's leading digital insurance aggregator — strong brand recall, wide consumer base, and tech-driven distribution.

Moat

First-mover advantage in a niche digital insurance landscape.

Scalable platform with rising profitability signals improving operational leverage.

But returns on capital remain modest — indicating market dominance hasn’t translated into robust financial returns yet.

📉 Entry Zone & Investment Guidance

Entry Zone Recommendation: Consider entry if price dips to ₹1,500–₹1,600 — provides better margin of safety relative to earnings.

Long-Term Holding Advice

Suitable for high-risk, high-growth investors with tech-sector conviction.

Monitor profitability improvements, ROE trends, and P/E compression.

Institutional interest rising — positive sentiment signal.

Would you like a side-by-side comparison with another fintech player, or a visual chart showing valuation vs. industry benchmarks? Happy to dig deeper if you are.

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