HomeStock MarketPolicyBazaar share price dips 10% in weak markets. Should you buy on...

PolicyBazaar share price dips 10% in weak markets. Should you buy on this drop?

PB fintech or PolicyBazaar share price fell around 10 percent a few days ago. Surprisingly, that happened during an early morning deal. The PE Fintech shares opened with a gap of ₹28 on the National Stock Exchange of India Ltd (NSE). It did not stop there and hit an all-time low. It was ₹775 per share that led to around 10 percent loss in the opening bell session. However, the situation is a bit different for the stock market analysts. They are looking into this dip as a purchasing opportunity. That applies to both short-term and long-term loan buyers.

Effects on PolicyBazaar share price

According to the stock market analysts, PolicyBazaar’s share price may get back strong. That is because they expect the same to get good business volume. The volume is supposed to come from policy renewals. They have called this time opportune. However, the dip might be short-lived.

The stock may also go up to ₹1000 levels in a short term. Sumit Bagadia is the Executive Director of Choice Broking. As published in Mint, he said, PB Fintech shares have strong support at ₹750 and it may go up to ₹720 to ₹700 on breakage of this support. So, positional investors should wait for some time as the stock is expected to become highly bullish after giving breakout above ₹850 on closing basis.”

Expert talk

Anuj Gupta is the Vice President of IIFL Securities. He also echoed Sumeet Bagadia’s statement. According to Mint, Gupta said, “PolicyBazaar or PB Fintech’s main income is from the policy renewal. As policy renewal goes up in last quarter of the financial year, it is expected to report strong Q4 numbers. So, the current dip is a good opportunity for buyers but, they should buy around ₹750 to ₹760 and hold for long-term target of ₹1200.”

Ravi Singhal of GCL Securities has talked on the same lines. He has recommended a strict stop loss that ends at ₹700 levels.

What happened with PolicyBazaar share price?

Shares of PolicyBazaar dropped on Friday because of a reported block deal. Its founder trimmed the stake in the same. According to NSE’s data, about 77.98 lakh shares changed hands. On the other hand, 5.82 lakh shares were traded on BSE. However, no details of the buyers or sellers are available as of now.

Conclusion

PB Fintech had earlier revealed an agenda of its co-founders Alok Bansal and Yashish Dahiya. They will be selling shares worth 2.4 percent of their stake in a block deal. The deal is said to be worth $130-140 million (Rs 1,000 crore). This was the deal that was supposed to be a discount on February 10. In short, it was supposed to be the closing price.

Now, the cumulative stake of the founders will reduce to 8.01 percent. That will be on a fully diluted basis. Currently, it is at 10.33 percent until changed. So, PolicyBazaar has tanked more than 47 percent of its value. That is as per its 52-week high stakes that were earlier scaled in November 2021. It is less than 5 percent of the 52-week lows that happened in January 2022.

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