Groww Shares lights up Dalal Street: 7% spike pits Jefferies vs JM Financial

Overview

• Groww shares jumped significantly, rising by a maximum of 7%, after the global brokerage Jefferies gave the company a ‘buy’ recommendation and a target price of Rs. 180.

• Jefferies believes that Groww has bright long-term prospects, aided by market share gains, new offerings such as margin trading and wealth management, and increasing profits.

• Despite the rally, JM Financial has issued a sell rating, warning that high valuations, regulatory risks, and reliance on broking revenues could limit upside in the near term.

Billionbrains Garage Ventures shares, the parent company of online investment platform Groww, rallied sharply on December 22, rising as much as 7 % intraday. The stock gained momentum after global brokerage Jefferies initiated coverage with a bullish outlook, even as domestic brokerage JM Financial struck a cautious note on valuation concerns.

At around midday, Groww shares were trading near Rs. 168-Rs. 169 on the NSE, after touching an intraday high of Rs. 172.50. This marked a strong rebound from the previous close of Rs. 160.87, extending the stock’s winning streak for a third consecutive session. Here an in-depth analysis of Groww share price based on Moneycontrol data. 

Jefferies Turns Positive, Sees Strong Growth Levers

Jefferies has initiated coverage on Groww share price with a ‘Buy’ rating. It highlighted the company’s rapid rise to become India’s largest stockbroker by active client base in a short span. According to the brokerage, the company’s growth story is anchored in steady market share gains, improving monetisation, and expansion into adjacent financial products.

The brokerage expects Groww shares to deliver a compounded annual growth rate of around 35 % in earnings per share between FY26 and FY28. It believes new revenue streams such as margin trading facilities, wealth management, commodities, and lending products could meaningfully lift earnings over the medium term.

Jefferies has set a target price of Rs. 180 per share, implying an upside of roughly 12 % from recent levels. While it expects some margin pressure in FY26 due to near-term investments. The brokerage anticipates a sharp recovery thereafter, driven by operating leverage, rising average revenue per user (ARPU), and stable marketing costs.

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JM Financial Flags Valuation and Regulatory Risks

On the other hand, JM Financial has given the stock a ‘Sell’ rating, citing valuation concerns. The brokerage acknowledged Groww’s impressive client acquisition and platform-led growth but cautioned that a large portion of revenues still comes from broking-related activities such as trading fees and margin funding.

JM Financial pointed out that regulatory changes have previously affected derivatives volumes across the industry, which could pose risks to earnings visibility. It also raised concerns around the company’s dependence on broking revenues and key-person risks in a founder-led organisation.

According to the brokerage, Groww shares should trade closer to traditional domestic broking peers rather than asset-light global platforms. Hence, suggesting limited upside at current valuations.

Stock Performance Since Listing Remains Strong

Groww share price has delivered an impressive post-listing performance. The stock has surged nearly 72 % from its IPO price of Rs. 100 and is now trading close to double its issue price. The company had listed in November 2025 at a premium of around 14 %, reflecting strong investor appetite. The IPO, which raised Rs. 6,632 crore, was subscribed nearly 18 times, underscoring strong interest from both retail and institutional investors.

Groww share price chart shows gains of 4.18% at press time:

What Lies Ahead for Groww Shares

With global and domestic brokerages sharply divided on valuation comfort versus growth visibility, Groww shares are likely to remain volatile in the near term. While long-term growth drivers such as product expansion and rising investor participation remain intact, regulatory developments and valuation sensitivity could influence near-term price movements.

Investors will closely track execution on new business lines and margin expansion to assess whether the stock can sustain its strong rally going forward.

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FAQs

1. Why did Groww share price rise sharply today?

Groww shares surged after Jefferies initiated coverage with a buy rating and a Rs. 180 target price. Investors reacted positively to expectations of strong earnings growth, new business expansion, and improving profitability over the medium term.

2. What is Jefferies’ view on Groww stock?

Jefferies believes Groww has strong growth potential due to rising market share, better monetisation of customers, and expansion into new products. It expects earnings to grow at a healthy pace over the next few years.

3. Why is JM Financial cautious about Groww shares?

JM Financial is concerned about Groww’s high valuation and its heavy dependence on broking revenues. It also highlighted regulatory risks and believes the stock should trade closer to traditional Indian brokerage peers.

4. How has Groww stock performed after IPO?

Since going-public in November 2025, the Groww share price has grown close to 72% from the listing price of Rs. 100. This can be attributed to the increased interest and faith of investors in the business model of the company.

5. What are the key areas that investors would want to watch?

Investors can monitor the performance of Groww in areas such as new business verticals, the improvement of margins, and government regulations. Growth outlooks remain promising; however, volatility in the market may cause wild fluctuations in prices.