Groww shares jump 7%, m-cap back above Rs 1 lakh crore ahead of Q2 results: Should you buy, sell or hold?

The shares of Billionbrains Garage Ventures, the parent company of leading stock broking platform Groww, jumped more than 7 percent in the early trading hours of November 21. The newly-listed company is set to release its results for the July-September quarter of the financial year 2026 today.

The market capitalization of the company has now crossed the Rs 1 lakh crore-mark again after the stock snapped a two-session losing streak today.

Groww share price:

Groww shares had seen strong downturn in the past two sessions, falling nearly 17 percent during the period and wiping out over Rs 23,000 crore from the company's market capitalization.

The stock has now seen some recovery, with market cap above Rs 1,03,300 crore, as seen at 9.56 am. The shares rose more than 7 percent to trade at Rs 168.39 apiece. The stock is currently more than 50 percent higher than its listing price of Rs 112 apiece on NSE, and over 68 percent higher than its IPO price of Rs 100 apiece.

The shares of the company made a decent debut on stock markets on November 12, listing with a premium of 14 percent over the IPO price at Rs 114 apiece on BSE. The stock then surged around 94 percent from its IPO price in just five sessions to hit a high of Rs 193.91 apiece.

Here's what analysts say:

Groww's sharp run-up post-listing has taken its valuation well above those of many traditional capital market peers, raising questions around valuation comfort relative to the rest of the sector, said Nitin Jain, Senior Research Analyst at Bonanza.

“Its implied P/E multiple at IPO was estimated around 33–37x, which is elevated compared to established players like Motilal Oswal, and Angel One, most of whom trade at notably lower multiple. Currently Groww is trading at P/E of 61x where as its peers Motilal Oswal (29x), Angel One (33x), Nuvama Wealth (26x), IIFL Wealth which is far below Groww’s current valuation,” he noted.

'Valuation outpaced several older capital market companies':

Nitin Jain added that the stock's valuation of over Rs 1 lakh crore has outpaced several older capital market companies. "Groww has certainly run well ahead of most listed capital market players on valuation, justified mainly on the promise of digital scale and future product expansion. For value-oriented investors, current levels might demand caution, while growth-focused believers could still justify the premium if long-term projections are met," he added.

Master Capital Services had noted that the brokerage industry can expect some near-term headwinds based on recently announced SEBI policy adjustments and regulatory changes. However, it believes that the long-term trend of financialisation and growing retail participation in the Indian capital markets should suggest a strong backdrop of opportunity.

“Despite strong growth, concerns around high valuation multiples, margin pressures, and regulatory risks in the fintech/brokerage space weighed on cautious investors. The IPO attracted significant institutional participation, driven by expectations of further market share gains from traditional brokers, strong customer additions, and improving operating leverage. Investors/traders allotted shares may book part profit and hold the remain for the medium to long term with stoploss of 80,” said Shivani Nyati, Head of Wealth at Swastika Investmart.

'Consider accumulating Groww shares on dips':

Prashanth Tapse from Mehta Equities however advised non-allotted investors to consider accumulating Groww and monitor the stock post-listing, and consider adding on any meaningful dip. He added that allotted investors should hold the stock for the long term, given the company’s structural strengths and growth potential, while acknowledging short-term market risks.

Groww’s valuation overshoot indicates a shift from euphoria to consolidation, said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara. "Investors are waking up to the fact that high-growth stories must now justify their premium with profitability, retention, and execution discipline. In the near term, the stock is likely to trade sideways as expectations reset," he said.

'Existing investors should hold with strict stop-losses':

"Existing investors should hold with strict stop-losses, while new investors would be better off waiting for stability and earnings visibility before entering," he added.

"Investors are reassessing valuations amid weakening quarterly results and continuing losses in several companies. Additionally, global factors like rising interest rates, geopolitical tensions, and inflation fears have widened the risk-off sentiment. This correction is seen as a healthy reset, helping adjust inflated expectations and shifting focus toward fundamentals such as profitability, margin expansion, and sustainable growth. The market is becoming more selective with new-age tech valuations in this volatile environment," said Khushi Mistry, Research Analyst at Bonanza.

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Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.