Groww Shares Rally on Strong Q4 Performance
Billionbrains Garage Ventures Ltd, known as Groww, saw its shares jump significantly on Tuesday, rising by 8.96% to settle at Rs 214.05. This surge came after the brokerage firm announced a two-fold increase in its profit for the March quarter, signaling robust financial performance.
Conflicting Analyst Targets Emerge
Despite the strong quarterly results, the market is witnessing a split among financial analysts regarding Groww's future stock trajectory. Brokerage firms have offered vastly different price targets, creating uncertainty for investors.
MOFSL Sees Further Upside to Rs 235
MOFSL has maintained a positive outlook on Groww, suggesting a target price of Rs 235 for the stock. The firm attributes Groww's continued strong revenue growth to rising user adoption of its products and robust user activation. MOFSL highlights that Groww's brokerage business is gaining market share across various segments, boosted by recent product launches such as Margin Trading Facility (MTF) and commodities trading. The increasing number of affluent customers is also unlocking significant wealth management opportunities, further enhanced by the Fisdom acquisition. While MOFSL expects continued top-line growth from these areas, it also anticipates a rise in costs due to investments in AMC and wealth management businesses, alongside enhancements in technological capabilities.
JM Financial Maintains 'Sell' with Rs 150 Target
In contrast, JM Financial has reiterated its 'Sell' rating on Groww, lowering its target price to Rs 150 from an earlier Rs 144. The firm expressed concerns that Groww's current valuations, at 38 times FY27 EPS and 29 times FY27 EPS, remain ahead of any meaningful traction in recurring revenue. JM Financial values Groww at a 10% premium to Angel One, citing Groww's superior earnings growth projection of 41% CAGR over FY26–FY28E compared to Angel One's 32%.
Broader Brokerage Consensus
Beyond these two prominent views, other foreign brokerages like Citi, UBS, and Jefferies have offered target prices for Groww shares generally falling within the Rs 210-225 range, aligning closer to the stock's recent closing price.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.