Groww Share Price Surge: Groww share price jumped 6.5% on Dalal Street in Monday’s session after foreign brokerage Jefferies initiated coverage on the stock. The brokerage struck a bullish tone on the Bengaluru-based
firm’s growth prospects across its broking business, new initiatives and margin expansion.
Jefferies has set a target price of Rs 180, implying an upside of nearly 12% from the stock’s Friday closing price. It said Groww has multiple growth levers that could support an earnings per share (EPS) CAGR of 35% over the FY26–FY28 period.
The stock has surged nearly 72% since listing and is now trading close to double its issue price of Rs 100. Monday marked the third consecutive session of gains for the stock, following an almost 12% rise in the previous session.
What Jefferies said on Groww
Jefferies initiated coverage on Groww with a ‘Buy’ rating, noting the online brokerage’s rapid rise to become India’s largest broker by active clients, despite launching its broking business only in FY21. The brokerage highlighted that Groww commands a 26% market share, well ahead of its nearest peer at 16%, aided by its mutual fund funnel, mobile-first user experience and strong organic customer acquisition.
“We believe Groww has several structural levers that can drive a 35% earnings per share CAGR over FY26–FY28, led by sustained market share gains in broking, sharp scaling up of new initiatives such as margin trading facility and wealth management, and meaningful operating margin expansion,” Jefferies said.
According to the brokerage, Groww’s growth story is driven by a Robinhood-style ‘product velocity’ model, where frequent product launches deepen user engagement and improve monetisation as client vintage matures. Jefferies pointed out that nearly 50% of Groww’s client assets currently do not generate revenue, as they are largely parked in mutual funds, creating a significant cross-selling opportunity for higher-yield products.
New businesses such as margin trading facility, wealth management, commodities and loans against securities are expected to contribute around 20% of revenues by FY28, up from about 1% in FY25.
Jefferies also flagged margin expansion as a key rerating trigger. “While margins may face pressure in FY26 due to lower broking revenues and near-term investments in wealth management, we expect adjusted EBITDA margins to expand by around 700 basis points from the FY26 trough, driven by operating leverage, rising ARPU and stable marketing spends,” the brokerage said.
The brokerage has valued Groww at 33x December 2027 EPS to arrive at its Rs 180 target price. It added that while the stock currently trades at a discount to global peer Robinhood, the gap could narrow as Groww scales its newer businesses. Jefferies also said Groww deserves a premium over domestic peer Angel One due to stronger growth visibility, higher margins and lower dependence on F&O revenues.
Technical view
Shares of Groww, currently trading at Rs 168.35, are showing signs of a bullish reversal, according to Amruta Shinde, Research Analyst at Choice Broking. The stock, which listed in mid-November, had rallied to a post-listing high of Rs 193.90 before undergoing a healthy correction that found strong support near the 0.618 Fibonacci retracement level, followed by consolidation and a breakout.
“The breakout has been supported by a strong bullish candle, indicating renewed buying interest, and a decisive close above the Rs 175 resistance zone with higher volumes would further validate the bullish setup,” Shinde said.
She added that the price action indicates an immediate upside potential of Rs 200. On the daily chart, the RSI stands at 66.41 and is trending higher, while the stock is trading above its 20-day EMA, reinforcing positive momentum. Traders may consider accumulating on dips in the Rs 162–153 range, with a stop-loss below Rs 152.
Groww IPO and listing
Groww’s parent company, Billionbrains Garage Ventures, debuted on Dalal Street at a 14% premium to its IPO price of Rs 100 per share. The company’s Rs 6,632-crore initial public offering drew strong investor interest, with the issue being subscribed nearly 18 times overall.
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