Kotak analysts highlighted that PB Fintech has underperformed in recent months despite strong business performance. The brokerage noted concerns about the proposed international insurance distribution acquisition and upcoming rules on insurance commissions.
With these uncertainties subsiding, Kotak said the stock now offers a more attractive long-term proposition.
The firm retained its fair value estimate of ₹1,725 per share.
PB Fintech recorded strong growth in its core insurance business driven by term and health products. The company's new business premium grew 45% year-on-year in Q3FY26, while commissions remained roughly flat at 20.8%.
Kotak expects the company to maintain strong premium growth in the near term, even as commission rates gradually decline.
The brokerage said PB Fintech's diverse insurer mix, strong cash flows and track record of execution support its ability to sustain growth despite regulatory changes.
PB Fintech's board recently postponed a meeting on an international acquisition proposal, indicating that the company may pursue such plans by taking it private.
According to Kotak estimates, PB Fintech is expected to report profit after tax of ₹1,100 crore in FY2027, up from ₹680 crore in FY2026, due to strong revenue growth and margin improvement.
The company's market share in its addressable insurance market is projected to increase from 10% in FY2026 to 18% by FY2032.
On the BSE, shares of PB Fintech traded at ₹1,500 per share, compared with the 52-week range of ₹1,312 to ₹1,977.
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