Groww shares rise marginally as Motilal Oswal sees up to 19% upside

About this update from Billionbrains Garage Ventures Limited

Groww shares rose marginally on Monday after Motilal Oswal initiated coverage on Billionbrains Garage Ventures Ltd., the parent company of the discount broking platform.The stock touched an intraday high of Rs 159.70 on the NSE, up 2.7 percent. It later pared some gains to trade at Rs 155.89 around 2 pm, up 0.23 percent.Motilal Oswal initiated coverage with a ‘buy’ rating and a price target of Rs 185 per share, implying a potential upside of 19 percent from Monday’s closing levels.In its note, the brokerage said Groww has scaled rapidly to become the country’s largest retail broking platform on an active client basis within four years of launch. It added that the company had a market share of 26.8 percent in November, about 9 percentage points higher than the second-largest player.The brokerage said the company is building additional growth levers to diversify revenues and improve earnings quality. It said the expansion of the margin trading facility business, the growth of its commodities franchise, the increase in the loan against shares portfolio and the entry into wealth management could reduce dependence on the broking segment.Motilal Oswal said it expects Groww’s broking revenue contribution to decline to 67 per cent in FY28 from 85 per cent in FY25, leading to a more resilient earnings profile.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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