Groww Shares Reverse Two Days Decline Ahead Of Q2 Results
Shares of Groww's parent company Billionbrains Garage Ventures Ltd. reversed its two days decline on Friday as rose 6% in early trade ahead of its September quarter results.
The company is set to announce its first results after a blockbuster IPO and a dramatic stock reversal. The numbers are expected to set the tone for the stock's next leg.
Groww's post-listing dream run hit turbulence this week. The stock had fallen nearly 20% from record highs, wiping out over Rs 22,000 crore in market capitalisation in just two sessions.
The slide comes amid valuation concerns, profit-booking, and the stock's brief entry into the auction segment due to excessive volatility.
Despite the sell-off, Groww still trade well above its IPO price of Rs 114, giving comfort to long-term investors but raising questions about whether the peak froth has cooled.
What To Expect From Groww's Q2 Results?
Groww's broking business saw exceptional growth in the previous year, creating a high base. Since 84% of its revenue comes from stock broking, any slowdown in trading activity could hurt earnings.
The key question is whether the decline continues, signalling a structural slowdown, or it will show some stability.
October NSE data showed another month of increasing market share for Groww. Investors will watch if this momentum is reflected in quarterly performance despite the revenue moderation.
With new-age players often reporting volatile profits, any exceptional items impacting Profit will be scrutinised, especially given heightened valuation sensitivity.
Sustaining 50%-plus Ebitda margins will be a key sign that the business has operating leverage and discipline, not just momentum.
Investors will look beyond the headline numbers to see whether Groww can deliver sustained profitability and market leadership, or whether the stock's supercharged post-IPO rally got ahead of itself.
Groww Share Price Today
The scrip rose as much as 5.93% to Rs 166 apiece on Friday, highest since Nov. 19. It pared gains to trade 5.30% higher at Rs 165.01 apiece, as of 9:50 a.m. This compares to a 0.28% decline in the NSE Nifty 50 Index.
It has risen 25.52% since its listing earlier this month. The relative strength index was at 47.52.
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