Citi has assigned a 'Buy' rating to Angel One with a price target of ₹3,215 per share. The brokerage has also initiated coverage on Groww with a 'Buy' recommendation and a price target of ₹195.
The foreign brokerage said that large-scale retail broking platforms are undergoing a transition, evolving from pure-play brokerage-led market proxies to one-stop platforms offering a wide range of financial products.
For Angel One, Citi said the company's aggressive customer acquisition strategy and strong execution capabilities, which it believes support its positive stance.
In the case of Groww, the brokerage pointed to its niche market leadership, customer-first approach and high brand recall, along with a lean business model that drives superior operating efficiencies.
Citi added that cross-sell opportunities remain huge for both platforms, aided by a rapidly expanding product portfolio and a large, fast-growing captive customer base.
While market volatility and regulatory challenges remain near-term risks, the brokerage said the early stage of Indian capital markets and changing customer behaviour in financial product purchases place these platforms in a favourable position.
According to Citi, a meaningful re-rating for both stocks will depend on the success of business diversification.
Among analysts tracking Angel One, nine have a 'Buy' rating, two recommend 'Hold', and one has a 'Sell' call.
All four analysts covering Groww currently have a 'Buy' rating on the stock.
