Investment trading platform Groww could see its shares climb significantly, with one market expert projecting a potential rise to the Rs 300 mark. Pradeep Haldar advised investors to maintain their positions in the stock, which recently surged by nearly 9% over two trading sessions following robust first-quarter results.
Momentum After Q1 Earnings
Haldar believes the recent rally in Groww shares, currently trading around Rs 208, is not the peak. He foresees an immediate upside to Rs 240, with a further climb towards Rs 290-300 possible if the company's business momentum continues over the next few quarters. His optimistic outlook is rooted in the broader bullish sentiment towards capital-market-linked businesses, driven by deepening equity participation in India.
Understanding Groww's Valuation
Addressing Groww's high valuation as a 'new-age' company, Haldar explained that traditional valuation metrics, such as the price-to-earnings (PE) ratio, may not fully capture the market's enthusiasm for platform-led financial enterprises. He noted Groww's PE multiple at approximately 52, significantly higher than a listed peer like Angel One, which stands around 29. Despite this, Groww's market capitalization is close to Rs 1.31 lakh crore, with a profit after tax of about Rs 2,000 crore.
"Groww is a new age company and new age company ka PE always remains high," Haldar stated, emphasizing the market's willingness to invest in scalable, technology-driven financial platforms.
Haldar suggested that investors should evaluate the stock based on sector expansion and future business potential rather than focusing solely on short-term valuation comfort.
Betting on India's Investing Boom
The expert's broader investment thesis hinges on the structural growth of India's capital markets. As retail participation increases and financialization accelerates, broking and asset management companies are increasingly viewed as long-term investments in the domestic savings and market activity landscape. Haldar expressed continued positivity on "broking and AMC related counters" generally, highlighting Groww's strong position to capitalize on the Indian market's ongoing expansion.
Trading Strategy for Investors
For current shareholders, Haldar recommended a positional strategy, advising against frequent trading. He noted that the stock has established a recent support level around Rs 185-190 and suggested maintaining a stop loss near Rs 180. His clear message to investors is to stay invested, closely monitor the next two to three quarterly results, and allow the underlying business trends to unfold. "Bahut badhiya counter hai. Bane rehna chahiye," he concluded.