Shares of Groww saw a strong uptrend on Monday, surging by almost 10% and reaching a new high of Rs 216. The stock commenced trading at Rs 201, briefly dipping to Rs 193.95 before rebounding, showcasing significant buying activity.
This notable increase follows robust quarterly earnings and favorable assessments from brokerage firms, although there are some reservations regarding the stock’s valuations.
The impressive rally is primarily attributed to the company’s stellar financial performance. Operated by Billionbrains Garage Ventures, Groww reported a remarkable 122% surge in net profit to Rs 686 crore in the last quarter of March.
Furthermore, the company recorded an 87% year-on-year increase in revenue from operations, totaling Rs 1,505 crore, while its EBITDA witnessed a substantial 142% growth, indicating notable margin enhancements.
The surge in performance was underpinned by heightened user engagement on the platform. The total number of transacting users rose by 25% to 2.16 crore, with active users reaching 1.67 crore as of March 31, 2026.
Customer assets on the platform grew by 36% to Rs 3 lakh crore, with strong net inflows amounting to Rs 25,000 crore.
Trading activities, particularly in derivatives, were pivotal in driving revenue, with equity derivatives contributing 54.6% of the total income in the quarter. Additionally, the company is experiencing growth in new segments such as margin trading and commodities, diversifying its revenue streams.
Regarding brokerage opinions, Jefferies maintained a Buy rating on Groww and raised its target price to Rs 225, indicating a potential upside of around 15%. They highlighted the company’s impressive recovery in trading volumes and profitability compared to industry peers.
Motilal Oswal also reiterated a Buy rating and increased the target price to Rs 235, suggesting a potential upside of approximately 20%. They emphasized the company’s continued benefit from growing user adoption and robust product offerings.
Conversely, JM Financial retained a Sell rating with a target price of Rs 150, implying a downside of over 20%. They cautioned that while growth prospects are promising, current valuations might be stretched, potentially not fully capturing associated risks.
The stock’s significant surge reflects high investor confidence following the earnings release. The company’s user growth, increased trading activity, and revenue expansion are significant positives.
While some analysts foresee further upside potential, others caution about the already elevated valuations. Groww has acknowledged the possibility of short-term volatility supporting trading activity but cautioned about potential market weaknesses affecting investor sentiment and user growth over time.
In conclusion, Groww has displayed strong business momentum. However, the stock’s future trajectory will likely be influenced by market conditions, trading patterns, and the sustainability of earnings growth in the upcoming quarters.