PB Fintech shares saw a decline of more than one percent on November 11 after UBS downgraded the stock to 'Sell' from 'Neutral', although the target price was raised to Rs 1,550 from Rs 1,205.

This is in spite of the company's strong performance over the past year, with a 121% increase in stock value, surpassing the Nifty's 74% increase during the same period.

UBS expressed concerns about slower disbursements affecting credit offtake, despite PB Fintech's impressive Q2FY25 results, which marked the fourth consecutive quarter of profit.

The company reported a 44% year-on-year increase in operational income, reaching Rs 1,167 crore, driven by strong growth in health and life insurance premiums.

UBS expects that new initiatives will help the company achieve EBITDA break-even by FY27, supported by a steady renewals pool that will enhance long-term profitability.

However, the brokerage believes that these positive factors are already reflected in the current stock valuation.