Jefferies report on Groww shares recommends buying; after seeing the target, you too will say buy for earnings!

News Topical, Digital Desk : Brokerage firm Jefferies initiated coverage on Billionbrains Garage Ventures, the parent company of India's largest broking platform Groww, on Friday, December 19. Following this report, Groww shares saw a sharp rise on Friday. On December 19, Groww shares closed at Rs 161.89, up 12.34% on the NSE. Jefferies says India's largest retail brokerage company by active clients is following a Robinhood-style playbook, which could lead to 35% compound annual earnings growth over the next three years as new products scale and margins expand.

What is the target price of Groww shares?

Jefferies has initiated coverage on Groww's parent company with a "buy" recommendation, with a price target of ₹180 per share. Jefferies said the stock broker's product velocity model is similar to Robinhood's, and added that it sees revenue growth of 29% CAGR during FY26-28. Last month, Groww reported a 12% year-on-year increase in its consolidated net profit to ₹471.33 crore in the September quarter, driven by a growing user base and strong asset growth.

How were the quarterly results?

The Bengaluru-headquartered company had posted a net profit of Rs 420.16 crore in the July-September quarter of the previous financial year ( Groww Q2 Result). The broking firm's revenue from operations declined to Rs 1,018.74 crore in the quarter from Rs 1,125.4 crore in the three months ended September 30, 2024, Groww said in a stock exchange filing, releasing its first quarterly results after listing on the stock exchanges earlier this month. Groww said its total transacting users increased to 19 million, a 27% year-on-year increase. Additionally, customer assets grew 33% year-on-year to Rs 2.7 lakh crore, driven by strong flows into both mutual funds and equities.

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