Shares of Policybazaar’s parent company, PB Fintech Ltd, fell more than 4% on May 26 after a block transaction in which about 9.5 million shares, or 2.1% of the company, changed hands in a series of deals, according to Bloomberg. However, the details of the buyer and seller are not yet known.

The stock fell as much as 4.2% and touched a low of Rs 596.30 on the BSE. The stock was trading at Rs 603 on the BSE at 9:30 am, down 3.12% from its previous close. India’s benchmark Sensex rose 0.16% to 61,974.

Most recently, the company reported earnings for the March quarter, and its losses narrowed from a year ago. The company reported a narrowed loss to Rs 8.95 crore from Rs 219.6 crore a year earlier. Operating income stood at Rs 869.09 crore, an increase of 60.85% from Rs 540.29 crore in the same period last year.

After the numbers were released, many brokerages were bullish on the stock and raised their price targets on the stock. JM Financial has raised its target price on the stock by 58% to Rs 980 per share and maintained its buy rating. Citi set a target price of Rs 820, while Morgan Stanley valued the stock at Rs 810. Also, CLSA estimated the stock to be worth Rs 720 crore.

“The company is now the most dominant insurance distributor in the country, with our estimates showing Policybazaar accounting for 42% of online insurance distribution, while also becoming the largest PoSP player. We are maintaining our Capacity improvement into FY24 itself, leading to a DCF-based target price of Rs 980. However, our steady-state profitability remains similar, with early margin improvement implying slower growth in later years,” JM Financial said in a note to investors.