Groww Share Price Target 2026: BofA Securities has initiated Buy coverage on Billionbrains Garage Ventures (Groww), saying the company is "engineered for growth" and that it could be India's financial deepening proxy.
The brokerage has set the Groww share price target at Rs 235. The target price implies an upside of 15 per cent from Thursday's (April 16) closing price of Rs 203.80 on NSE.
At CMP of Rs 203.80, Groww shares are up 104 per cent from the IPO price of Rs 100.
Groww Share Price Target: Brokerage Commentary
The brokerage said that Groww is set to outpace India's retail investment industry, which is still at an early stage.
The growth will be driven by growing high and upper middle income household base, financialization of household savings, low penetration of active investors and relatively higher returns in capital markets, aided by favorable taxation.
It said that Groww is well positioned to outpace industry growth owing to its strong focus on new-to-investing customers and increasing product adoption amongst existing users.
The brokerage estimates revenue growth of 30 per cent CAGR over FY26E-28E, with 15 per cent growth in active investors and 12 per cent in ARPU.
Groww has one of the highest profit margins among peers, with an EBIDTA and PAT margin of 61 per cent and 47 per cent in FY25, respectively.
Given a largely fixed-cost, scalable platform model, the brokerage said that it sees meaningful scope for further margin expansion in Groww. It expects EBITDA and PAT margin to expand to 67 per cent and 52 per cent by FY28E, respectively.
Groww's tech-based model, strong customer acquisition engine, and long-term cross-sell optionality, will drive Groww's EPS growth. It even sees scope for re- rating as Groww drives further margin expansion, and establishes a credible presence in wealth management.
