Jefferies initiates coverage on Turtlemint with buy rating, sees 37% upside

Jefferies initiated coverage on insurtech firm Turtlemint with a 'Buy' rating and a price target of ₹190, leading to a significant jump in the company's stock on the Bombay Stock Exchange (BSE). The shares climbed as much as 5.7% to an intraday high of ₹152.80.

The brokerage firm cited Turtlemint's strong position in the Point-of-Sales-Person (PoSP) channel as a key factor for its optimistic outlook. This channel reportedly accounts for approximately 6% of insurance premiums sold across India, positioning Turtlemint to benefit from its growth.

Jefferies forecasts that Turtlemint's revenue will grow at a compound annual growth rate (CAGR) of 38% over the next three years. This growth is expected to be driven by a 31% increase in premiums and higher take rates. The firm also anticipates an improvement in the company's adjusted EBITDA margin, moving from a loss in FY26 to a 10% margin by FY29 as the business scales.

The stock has shown recent strength, gaining about 10.6% in the past five trading sessions and approximately 12% since its listing price. Turtlemint, founded in 2015, also reported a narrowing of its net loss by 19% to ₹37.8 crore in the first quarter, with operating revenue increasing by 40% year-on-year.