Groww Shares Surge 13% After Jefferies Gives ‘Buy’ Rating

Stock broking platform Groww’s shares rallied as much as 13% during intraday trading today after the new-age tech company received a thumbs up from the brokerage firm Jefferies. The company’s shares ended today’s trading session 11.76% higher than previous close at INR 161.05. 

With the rally today, Groww’s market cap zoomed to $11.09 Bn (INR 99,425.77 Cr). This is almost 50% greater than the $7.47 Bn market cap the company commanded at the time of its listing. Since listing in November, the company’s shares have zoomed 42% from its listing price of INR 114. 

Brokerage firm Jefferies is bullish on the stock’s future trajectory, giving it a price target (PT) of INR 180 as well as a ‘Buy’ rating. The PT represents a 12% upside. The brokerage firm’s rationale for the rating stems from Groww’s leadership in the stock broking segment despite it only entering the market in FY21. The firm believes Groww has several levers to “drive 35% EPS CAGR over FY26-28e.”

Jefferies’ outlook is in line with Groww’s financial performance in recent times. In Q2 FY26, the stock broking platform posted a 12% jump in its consolidated net profit to INR 471.3 Cr from INR 420.2 Cr in the same quarter last year. However, its top line declined 10% to INR 1,018.7 Cr in the quarter under review from INR 1,125.3 Cr in Q2 FY25.

Groww said it had 19 Mn transacting users at the end of September quarter, up 5% QoQ and 27% YoY, while the number of active users stood at 14.8 Mn.

Groww got listed on the bourses on November 12, with the shares of the company listing 14% above their issue price on the BSE. Groww’s IPO, which comprised a fresh issue of shares worth INR 1,060 Cr and an OFS component of up to 55.72 Cr shares, closed with an oversubscription of 17.6X.