Groww shares extend rise even as JM Financial sees stock 'too expensive'

Groww shares extends rise in Monday's trading session. 

Shares of Billionbrains Garage Ventures Ltd, the parent of online broking platform Groww, extended their gains for the second straight session on Monday, settling nearly 2 percent higher, even as JM Financial initiated coverage on the stock with a ‘sell’ rating, citing valuation concerns.

The stock opened at Rs 166.50, up 2.39 percent from its previous close, and climbed to an intraday high of Rs 172.50, marking a gain of 7.23 percent. Later, it pared some gains to settle 1.62 percent higher at Rs 163.48.

JM Financial Services on Monday initiated coverage on the stock with a ‘sell’ rating and set a price target of Rs 144 pershare. The brokerage said the stock appears “too expensive for a broking business”.

Shares of Billionbrains Garage Ventures have risen 72.5 percent from their issue price of Rs 100 since listing last month.

JM Financial said Groww’s broking orders declined 29 percent over two quarters in FY25 following regulatory curbs on derivatives trading. It flagged this as a key risk to the company’s business model, adding that similar concerns have affected peers such as Angel One.

Earlier, global brokerage Jefferies initiated coverage with a ‘buy’ rating and set a price target of Rs 180 per share.

Jefferies said Groww’s product velocity model mirrors that of US-based trading platform Robinhood and projected revenue growth at a compound annual growth rate of 29 per cent over FY26 to FY28.

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