Shares of Groww surged more than 7% in early trade on Wednesday after Bank of America Securities initiated coverage with a ‘Buy’ rating and a target price of ₹235, signaling strong upside potential from current levels.
As of 10:10 AM (IST), the stock touched an intraday high of ₹212.90, which also marks its 52-week high, compared to the previous close of ₹194.71. The rally was supported by heavy trading activity, with volumes crossing 5.21 crore shares.
According to the brokerage note, Groww is positioned to benefit from growth in retail investing in India. BoFA expects the company to report revenue growth of around 30% CAGR between FY26 and FY28.
The report also states that operating leverage could support margin expansion, with EBITDA margins estimated at 67% and PAT margins at 52% by FY28E.
BoFA has assigned a valuation of 39x FY28E P/E to the company.
The brokerage highlighted risks including:
- Weak performance in capital markets, which may impact activity levels
- Expiry of the six-month lock-in period, which could affect stock supply
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