Shares of Billionbrains Garage Ventures, the parent company of Groww, rallied as much as 5.3% to hit an all-time high of ₹197 on the BSE on Friday, extending gains for a third session and rallying nearly 20% over the same period. According to reports from The Economic Times, the stock surge was backed by strong volumes, with around 2 crore shares traded in the first hour, pushing total turnover past ₹400 crore. Groww shares have been on an impressive run, rallying nearly 50% in the last six months and are up about 25% since the beginning of the year.
Groww maintains its position as the largest broker in terms of active clients, with a 28% market share, compared with 15% for the second-largest player. As reported by The Economic Times, this leadership is driven by its strong mutual fund funnel, an easy-to-use UI and UX, and robust word-of-mouth traction. The company's dominance in the brokerage space has been a key factor behind its recent stock performance surge.
Last month, a CNBC-TV18 report indicated that JPMorgan had initiated coverage on Groww with an 'overweight' rating and a price target of ₹210 per share. According to The Economic Times, the brokerage described Groww as the most lucrative India-listed consumer internet platform, highlighting its consistent market share gains and strong appeal among aspirational investors. JPMorgan noted the company's robust cross-selling capabilities and operating leverage, which could enable it to outpace overall market growth. The brokerage added that while Groww appears expensive when viewed purely as a discount broker, it looks attractively valued when assessed as a broader internet platform.
The company posted a 27.8% year-on-year decline in consolidated net profit at ₹546.93 crore, compared to ₹757.11 crore in the same period last year. As reported by The Economic Times, the drop was largely due to a one-time gain of ₹315 crore, net of tax, recorded in Q3 of the previous fiscal. However, excluding this, operating profit after tax rose 24% year-on-year from ₹442 crore. Revenue from operations showed strong growth, rising 24.8% year-on-year to ₹1,216.07 crore, up from ₹974.53 crore in the year-ago quarter. On a standalone basis, profit after tax declined more sharply, falling 36.7% year-on-year to ₹428.45 crore, compared with ₹677.46 crore reported in the corresponding quarter last year.
