Citigroup has maintained a ‘Buy’ rating on the stock with a price target of ₹230. The brokerage said Groww delivered a strong quarter, with core profit before tax rising 27% sequentially, coming in about 4% ahead of its estimates.
It added that the company has benefited from elevated market volatility, which has driven higher trading volumes in the broking segment.
At the same time, Groww continues to scale up newer product offerings such as margin trading facility, although initial traction has been slower than expected. Citi said that the company remains focused on a product-led strategy to drive long-term growth.
Meanwhile, UBS has a ‘Neutral’ rating with a price target of ₹210. The brokerage mentioned strong growth driven by operating leverage and market share gains, while citing that improving product metrics and the wealth platform provide additional optionality.
It added that the margin outlook remains balanced, with cost discipline offsetting ongoing investments.
For the March quarter, Groww reported a 25.5% sequential rise in net profit to ₹686.3 crore, while revenue grew 23.8% quarter-on-quarter to ₹1,505.3 crore. Revenue growth also exceeded brokerage expectations of around 17%.
EBITDA increased 30.3% to ₹938.6 crore, with margins expanding to 62.4% from 59.2% in the previous quarter, aided by operating leverage.
Groww’s total transacting users rose to 21.6 million, up 6% sequentially and 25% year-on-year, with active users at 16.7 million. Total customer assets stood at ₹3 lakh crore as of March 31, down 1% sequentially but up 36% compared to last year.
Groww’s mutual fund market share increased to 14% from 12.3% a year ago, according to its investor presentation.
Shares of Groww ended 0.47% lower at ₹197.40 on Monday following the earnings announcement. The stock has doubled from its issue price of ₹100 and hit a post-listing high of ₹214.
