Groww Share Price Surges 10% After Jefferies Lauds Its Impressive Growth

After a relatively muted start to the day, shares of Groww have been on a roll on Friday's trade, rising up to 11%. This comes on the back of a positive initiation from Jefferies, with the brokerage firm comparing the company to popular American trading app Robinhood.

The stock is currently trading at Rs 158.2, reaching an intraday high of Rs 162.63. This accounts for gains of more than 10% compared to Thursday's closing price of Rs 144.

The shares of Groww surged after Jefferies acknowledged Groww's impressive growth and how it has become the largest stockbroker in India. The firm admits the fintech has had a similar growth path as Robinhood.

Groww, operating as Billionbrains Garage Ventures, has delivered a stronger post-listing performance.

The stockbroker-co was listed on Nov. 12 at around Rs 112 on the NSE, accounting for a 12 premium over its IPO price of Rs 100. The stock surged to Rs 134 on debut before closing near Rs 131.

The scrip rose as much to Rs 159.74 apiece on Friday. This compares to a 0.51% growth in the NSE Nifty 50 Index.

It grew 57.55% on a year-to-date basis, and surged 15,634.00% in the last 12 months. The relative strength index was at 39.92.

Presently, only Jefferies is tracking the stock and recommends "buy" rating. The brokerage firm has acknowledged Groww's impressive growth and the way it has grown to be the largest stockbroker in India.

Robinhood was founded by Vlad Tenev and Baiju Bhatt and it started off with the promise of making trading easier and accessible to everyday user, specifically targeting the young audience. After launching the app in 2015, Robinhood witnessed unprecedented growth due to its easy app interface.

Jefferies believes Groww is on a similar path, having overtaken Zerodha as the biggest stockbroker in India, all by employing a user-friendly app interface and connecting with the Indian youth.

Jefferies expects Groww to utilise its various levers to reach 35% earnings per share CAGR over FY26 to FY28, likely aided by a 19% expected growth in the broking business led by client vintage & market share gains.

With the stock showing a promising growth, Jefferies has issued a 'buy' target on Groww.