Kotak maintained its “buy” recommendation on Groww with a price target of ₹220, indicating an upside potential of 12% from Monday’s closing levels.
Shares of Groww are down 2.5% on Tuesday, but are already up 100% from its issue price of ₹100 per share.
Kotak listed takeaways from meeting it had with the company’s management:
- Groww has sustained strong net customer additions in a subdued industry environment, helped by better retention, supported by a multi-product marketing strategy.
- The company continues to capture 40-50% of the gross industry additions,.
- Groww aims to deepen the engagement and monetisation through AI in the future, although the pricing framework remains under evaluation.
- Lastly, Groww’s margin trading facility (MTF) book is scaling well with supportive proposed regulatory changes, the brokerage stated.
The company’s March quarter net profit increased 25.5%, while its revenue increased by 23.8%to ₹1,505.3 crore sequentially. Its EBITDA grew 30.3% to ₹938.6 crore and its margins expanded to 62.4% from 59.2% in the previous quarter.
At the end of the fourth quarter, Groww’s total transacting users were at 21.6 million, up 6% sequentially and 25% from the year-ago period. Of these, active users stood at 16.7 million.
Its total customer assets as on March 31 were at ₹3 lakh crore, down 1% from the previous quarter and 36% from the previous year.
Meanwhile, its market share in the mutual funds segment expanded to 14% from 12.3% in the year-ago period.
Of the nine analysts who have coverage on Groww, seven have a “buy” rating and one each have “hold” and “sell” recommendations.
Shares of Groww are trading 2.3% lower on Tuesday at ₹193.05. The stock is up 25% so far in 2026.
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