PB Fintech Ltd shares hit a low of Rs 1,115.10 apiece on Friday, below its listing price of Rs 1,150 apiece. The scrip, which was listed on November 15, 2021, fell 11.64 per cent from its day's high of Rs 1,262 apiece. This came after a 32 per cent decline in the previous session following IRDAI's proposal to cap commissions.

Under the proposed framework, the PB Fintech management sees a likely reduction in health business Net Present Value (NPV) by 60-70 per cent. In life insurance, the management expects NPV to remain at similar levels.

"It is also evaluating various coping measures, including: 1) manufacturing of insurance products; 2) reinsurance broking; 3) new products including credit attachment and non-insurance products; and 4) monetization of existing services like offerings on risk assessment for insurers, claims support and servicing for policyholders, and its garage and hospital networks," Morgan Stanley said.

Haitong International slashed its target to Rs 1,560 from Rs 2,080. Jefferies suggested 'Buy' with a target of Rs 1,540 from Rs 2,050 earlier.

The stock had jumped 4.3 per cent to hit a high of Rs 1,262 apiece earlier in the day.

Foreign brokerage Nomura India said PB Fintech management’s concall on Thursday focused on the need to bring about changes in its business model. The management, it said, indicated that it will be evolving from the “growth at any cost” mindset to a “rationalised growth” mindset, given the changes to the distribution structure by the regulator.

"Though it has indicated no mass layoffs or radical reactions, the company plans to trim marketing expenses and slow down hiring," Nomura said as it suggested 'Neutral' rating on the stock.

Haitong International slashed its target to Rs 1,560 from Rs 2,080. Jefferies suggested 'Buy' with a target of Rs 1,540 from Rs 2,050 earlier. On Tuesday, PB Fintech shares rose 4.3 per cent to hit a high of Rs 1,262 apiece.

"We have kept earnings unchanged, but cut Policybazaar's valuation multiple by 30 per cent to 18 times FY30 Ebitda due to uncertainty w.r.t. take rates. Price targets falls to Rs 1,540," Jefferies said.

BofA Securities also suggested 'Neutral' and a target of Rs 1,410. Distribution is likely unattractive for larger agents, it said.