Shares of Groww, operated by parent Billionbrains Garage Ventures, surged over 6% intraday to around Rs 207 after a bullish initiation from Bank of America.
The stock touched a high of Rs 207.60 as of 10 am, hovering close to its recent peak levels. The rally has been sharp—Groww is up nearly 25% in the past month and has climbed about 95% from its issue price of Rs 100, reflecting strong investor appetite for retail investing platforms.
BofA initiated coverage with a Buy rating and a target price of Rs 235, implying a potential upside of around 21% from the last closing level. The brokerage describes Groww as a direct play on India's financial deepening, with strong structural tailwinds supporting growth. It expects 30% revenue CAGR over FY26–28, driven by 15% growth in active users and 12% growth in ARPU, underpinned by increasing participation in financial markets.
According to BofA, India's retail investing ecosystem remains in an early stage of penetration. Factors such as rising incomes, financialisation of savings, and increased adoption of market-linked instruments are expected to drive long-term growth. Groww's digital-first approach and strong onboarding funnel position it well to capture new investors while expanding engagement among existing users.
BofA also highlighted Groww's industry-leading profitability, supported by a scalable, fixed-cost-heavy model. As the platform scales further, operating leverage is expected to drive margin expansion. The brokerage estimates EPS growth of around 35% CAGR over the next two years, aided by strong revenue growth and improving cost efficiencies.
Last month, JPMorgan initiated 'Overweight' coverage for Groww shares with target price of Rs 210. The brokerage called the firm most lucrative India-listed consumer internet platform, which is a consistent share gainer, while dominating aspirational investors. Groww also has a strong cross-selling credentials that could help it outgrow the market, enjoys strong pricing power and is the cheapest India internet platform with the largest profit pool, the brokerage said.
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