Groww Stock Surges 12% After Jefferies Initiates 'Buy' Rating

Jefferies Initiates Coverage with Bullish Outlook

Shares of Billionbrains Garage Ventures, the parent company of the investment platform Groww, jumped 12% on Friday after the global brokerage firm Jefferies initiated coverage with a 'Buy' rating. The positive report, which set a price target of ₹180, cited the company's rapid market share gains and strong visibility for future earnings growth. The stock ended the trading session at ₹161, an increase of ₹17 or 11.8%, pushing its market valuation to ₹99,426 crore.

Jefferies' endorsement positions Groww as a high-growth player in the Indian fintech landscape, drawing comparisons to the US-based platform Robinhood. The brokerage highlighted Groww's scalable, product-led model and impressive client acquisition as key factors underpinning its optimistic forecast. The price target of ₹180 suggests a potential upside of approximately 12% from the closing price, adding to the stock's significant 61% gain since its Initial Public Offering (IPO).

Strong Earnings Growth on the Horizon

According to Jefferies, Groww is poised for substantial financial growth. The brokerage projects a compounded annual growth rate (CAGR) of 35% for the company's earnings per share (EPS) between the financial years 2026 (FY26) and 2028 (FY28). This growth is expected to be driven by three primary levers: consistent expansion in the core broking business, aggressive growth in new revenue streams like the margin trading facility (MTF) and wealth management, and significant margin expansion.

Jefferies anticipates Groww's revenues will grow at a 29% CAGR over the same period. This forecast is based on the company's