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Analysts say Groww’s fundamentals are strong, but the sharp post-listing rally has stretched valuations, leaving little room for error.
Groww
Groww share price: Just three days after listing, Billionbrains Garage Ventures — the parent of discount broking platform Groww — has delivered exceptional returns to IPO investors, leaving many who missed the allotment with a sense of regret.
Groww’s shares debuted at a 14% premium on Wednesday, November 13. They later surged 30.94% to close at Rs 130.94 against the IPO price of Rs 100. Since then, the stock has climbed to Rs 153.50 at its peak, delivering gains of over 50%. On Friday, the shares settled at Rs 148.41, reflecting a 48% premium.
Is Groww a good buy after the recent rally?
Analysts say that while Groww’s underlying business remains strong, the sharp post-listing rally has pushed valuations to richer levels, leaving limited room for missteps.
Groww is India’s largest retail broker with a 26.3% market share in active clients as of September 2025. Its growth — a staggering CAGR of 101.7% between FY21 and FY25 — far outpaces the industry’s 27%.
Groww’s strong financial metrics, rapid user expansion, and best-in-class digital execution continue to support its long-term prospects, said Abhinav Tiwari, Research Analyst at Bonanza. He added that the company’s dominance in retail broking, its young and sticky customer base, and its strong digital brand enhance its competitive moat. However, near-term upside appears capped unless new catalysts emerge or the broader market corrects.
Vinit Bolinjkar, Head of Research at Ventura, echoed this caution. For new investors, he recommends accumulating on dips rather than chasing the stock at current elevated levels. “The business offers structural growth, but valuations now leave limited margin for error,” he noted.
Even at the IPO price of ₹100, Groww was valued at 34 times its FY25 earnings — significantly higher than peers like Angel One and Motilal Oswal Financial Services, which trade near 20x and 27x, respectively.
“At these valuations, a large part of the anticipated growth and profitability is already priced in. Future returns will depend on Groww’s ability to continuously innovate and expand its market share,” Tiwari added.
Brokerage remains the company’s primary revenue driver, and because it is cyclical, analysts will closely watch the performance of its diversified segments such as wealth management, commodities, and margin trading facilities (MTF).
Should IPO investors book profits?
For IPO allottees, analysts suggest that booking partial profits could be a prudent strategy.
“Given the rapid appreciation, IPO investors may choose to lock in partial gains while still staying invested for long-term potential,” said Bolinjkar.
Groww’s IPO was subscribed 17.60 times by the final day of the issue. It also raised over Rs 2,984 crore from anchor investors on November 3 and counts names like Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella among its key backers.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 15, 2025, 12:09 IST
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