Shares of the financial services platform Groww witnessed a significant rally on Monday, extending their winning streak for the third consecutive session. The stock jumped 6.5% in today's trade on Dalal Street, fueled by a highly optimistic initiation report from global brokerage firm Jefferies.
Jefferies Backs Growth with a ₹180 Target
The surge follows Jefferies giving a firm 'thumbs up' to the Bengaluru-based company's future prospects. The brokerage has initiated coverage on Groww with a target price of ₹180 per share. This price target suggests a potential upside of approximately 12% from the stock's closing level last Friday. Jefferies expressed strong confidence in the company's multiple growth drivers.
Analysts at the firm believe that Groww's expansion in its core broking business, successful rollout of new initiatives, and potential for margin improvement position it for robust earnings growth. They project that these levers could power an earnings per share (EPS) compound annual growth rate (CAGR) of 35% over the fiscal years 2026 through 2028 (FY26-FY28).
A Stellar Run Since Market Debut
This latest gain adds to an already impressive performance since the company's stock market listing. Groww, operating under its parent entity Billionbrains Garage Ventures, has seen its share price climb nearly 72% from its IPO price of ₹100. The stock is now trading close to double its issue price. The bullish momentum was evident in the previous trading session as well, where the stock rallied almost 12%.
Groww's journey on Dalal Street began on a strong note. The company made its debut at a 14% premium to its IPO price of ₹100 per share. The overwhelming investor appetite was clear from the outset, with the company's ₹6,632-crore initial public offering (IPO) being subscribed nearly 18 times overall, reflecting massive confidence from all investor categories.
Market Implications and Future Outlook
The consistent buying interest, now bolstered by a major foreign brokerage's endorsement, highlights the market's growing belief in Groww's business model and its ability to capture a larger share of India's expanding digital financial services market. The stock's performance stands out in the fintech segment and underscores the strong investor memory of its highly successful public offer.
With Jefferies setting a clear growth trajectory for the next few years and the stock continuing its upward march, all eyes will be on Groww's upcoming quarterly results and its execution on the new initiatives highlighted by the brokerage. The current rally indicates that the market is pricing in the optimistic growth forecasts presented by analysts.
