Groww shares jump 7%, hit 52-week high after BofA initiation
BofA sets ₹235 target, sees 21% upside on strong growth outlook
Revenue to grow 30% CAGR, margins expand to 67% EBITDA by FY28
Groww Share Price Hits 52-week High, Jumps 7% on BofA's Bullish Call
Brokerages back Groww with upbeat targets as scalable model, strong margins and rising digital participation fuel long-term growth hopes
Groww
Summary
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Shares of Groww, operated by Billionbrains Garage Ventures, surged over 7% in intraday trade on Wednesday after a bullish initiation by Bank of America (BofA).
The stock climbed to a 52-week high of ₹212.90 in early trade, continuing its sharp upward momentum. It has gained nearly 21% over the past week and has doubled from its issue price of ₹100, reflecting strong investor interest in retail investing platforms.
BofA initiated coverage with a target price of ₹235, implying an upside potential of around 21% from the last closing level. The brokerage described Groww as a direct play on India's financial deepening, supported by structural tailwinds such as rising participation in equity markets and increasing financialisation of savings.
It expects the company to deliver revenue growth of around 30% CAGR over FY26–28, driven by 15% growth in active users and 12% growth in average revenue per user (ARPU).
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Strong Profitability, Growth Visibility
The brokerage also highlighted Groww's industry-leading profitability, supported by a scalable business model with a high fixed-cost structure. It expects EBITDA and PAT margins to expand to 67% and 52%, respectively, by FY28, aided by operating leverage as the platform scales further.
Earnings per share (EPS) is projected to grow at around 35% CAGR over the next two years, driven by strong revenue growth and improving cost efficiencies. The company has been valued at 39 times its estimated FY28 earnings.
However, BofA flagged near-term risks including weak capital market performance and the expiry of the six-month lock-in period.
Separately, JPMorgan had initiated coverage on the stock last month with an 'Overweight' rating and a target price of ₹210, calling Groww one of the most attractive India-listed consumer internet platforms.
In a separate development, Billionbrains Garage Ventures informed stock exchanges that a meeting of its Board of Directors is scheduled for April 20, 2026, to consider and approve the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026.
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This will mark the company's second quarterly results announcement since its listing on the stock exchanges.