A stock market analyst gestures towards a monitor displaying a rising stock chart and a "BUY" rating.
Shares of Groww jumped as much as 9.37% during intraday trading, reaching a new 52-week high of ₹212.95 on the BSE after Bank of America (BoFA) initiated coverage on the stock with a ‘Buy’ rating.
The stock later moderated, trading 6.52% higher at ₹207.40, with the company’s market capitalisation at ₹1.30 Lakh Cr (approximately $13.99 billion).
BoFA initiated coverage on Groww with a price target of ₹235, implying a 21% upside from the last close. The brokerage projects a 30% revenue CAGR over FY26-FY28, citing Groww’s strong position to benefit from India’s retail investing trends.
BoFA also highlighted Groww’s “best-in-class” profitability, with potential for further upside from operating leverage, which could drive EBITDA and PAT margins to 67% and 52%, respectively, by FY28E.
The brokerage valued Groww at 39 times its FY28E price-to-earnings multiple, while pointing out near-term risks such as potential capital market weakness and the expiry of the six-month lock-in period.
JPMorgan initiated coverage last month with an ‘Overweight’ rating and a price target of ₹210, identifying Groww as an attractive India-listed consumer internet platform. UBS initiated coverage with a ‘Neutral’ rating and a ₹185 price target.
Other brokerage and capital market-linked stocks also saw an uptick, with Angel One shares jumping about 6.13% to an intraday high of ₹297.90.
In Q3 FY26, Groww reported a 28% decline in net profit to ₹547 Cr from ₹757 Cr in the year-ago quarter. Operating revenue stood at ₹1,216.1 Cr, up 25% year-over-year.
About the Author
