Shares of Billionbrains Garage Ventures, the parent of Groww, declined 2% to hit their intraday low of Rs 203 on the BSE on Thursday. This drop ended the stock’s five-day winning streak, during which it surged 26%. BofA noted Groww’s strong profitability and expects EBITDA margins to expand to 67% and PAT margins to rise to 52% by FY28. However, it flagged near-term risks, including a potential slowdown in capital market conditions and the expiry of the six-month post-IPO lock-in period, which may lead to a supply overhang.
JPMorgan initiated coverage on Groww with an ‘overweight’ rating and a price target of Rs 210 per share. It described Groww as the most lucrative India-listed consumer internet platform, highlighting its market share gains and strong appeal among investors. Groww holds a 28% market share in active clients, significantly higher than the 15% of the second-largest player. In Q3, the company reported a 27.8% year-on-year decline in consolidated net profit at Rs 546.93 crore, while revenue from operations rose 24.8% year-on-year to Rs 1,216.07 crore.
