Groww share price soars 72% from IPO price - Should you buy, sell or hold?

Groww share price jumped 6.5% on Dalal Street in Monday’s trade after foreign brokerage Jefferies initiated coverage on the stock. The brokerage is bullish on the Bengaluru-based firm’s growth prospects across its broking business, new initiatives as well as margin expansion.

The global brokerage has set a target price of ₹180, which implies an upside of nearly 12% from the stock’s closing price on Friday. The brokerage said Groww has multiple growth levers that could support an earnings per share (EPS) CAGR of 35% over the FY26–FY28 period.

The stock has climbed sharply almost 72% since listing and is now trading close to double its issue price of ₹100. Today is the third straight session of gains for the stock. It rose almost 12% in the previous session.

What Jefferies said on Groww

Jefferies initiated coverage on Groww with a ‘Buy’ rating, highlighting the online brokerage’s rapid emergence as India’s largest broker by active clients, despite launching its broking business only in FY21. The brokerage noted that Groww commands a 26% market share, well ahead of its closest peer at 16%, driven by its mutual fund funnel, mobile-first user experience and strong organic customer acquisition.

“We believe Groww has several structural levers that can drive a 35% earnings per share CAGR over FY26–FY28, led by sustained market share gains in broking, sharp scaling up of new initiatives such as margin trading facility and wealth management, and meaningful operating margin expansion,” Jefferies said.

According to Jefferies, Groww’s growth story is underpinned by a Robinhood-style ‘product velocity’ model, where frequent product launches deepen engagement and lift monetisation as client vintage improves. The brokerage highlighted that nearly 50% of Groww’s client assets currently do not generate revenue, as they are parked largely in mutual funds, creating a large opportunity for cross-selling higher-yield products. New businesses such as margin trading facility, wealth management, commodities and loans against securities are expected to contribute around 20% of revenues by FY28, compared with about 1% in FY25.

Jefferies also flagged margin expansion as a key rerating trigger. “While margins may face pressure in FY26 due to lower broking revenues and near-term investments in wealth management, we expect adjusted EBITDA margins to expand by around 700 basis points from the FY26 trough, driven by operating leverage, rising ARPU and stable marketing spends,” the brokerage said.

Jefferies has set a target price of ₹180, valuing Groww at 33x December 2027 EPS. It noted that while the stock trades at a discount to global peer Robinhood, the gap could narrow as Groww scales its newer businesses, and added that Groww deserves a premium to domestic peer Angel One due to stronger growth visibility, higher margins and lower dependence on F&O revenues.

Technical View

Shares of GROWW, currently trading at ₹168.35, are showing signs of a bullish reversal, according to Amruta Shinde, Research Analyst at Choice Broking. The stock, which was listed in mid-November, had rallied to a post-listing high of ₹193.90 before undergoing a healthy correction that found strong support near the 0.618 Fibonacci retracement level, followed by consolidation and a breakout.

“The breakout has been supported by a strong bullish candle, indicating renewed buying interest, and a decisive close above the ₹175 resistance zone with higher volumes would further validate the bullish setup,” Shinde said.

She added that the price action points to an immediate upside potential of ₹200. On the daily chart, the RSI stands at 66.41 and is trending higher, while the stock is trading above its 20-day EMA, reinforcing positive momentum. Traders may consider accumulating on dips in the ₹162–153 range, with a stop-loss below ₹152.

Groww IPO and Listing

Groww’s parent company, Billionbrains Garage Ventures, made its Dalal Street debut at a 14% premium over the IPO price of ₹100 per share. The company’s ₹6,632-crore initial public offering saw strong investor interest, with the issue being subscribed nearly 18 times overall.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.