Shares of Billionbrains Garage Ventures Ltd, the parent company of online broking platform Groww, saw a 2% increase on Monday, despite JM Financial initiating coverage with a 'sell' rating due to valuation concerns.
,The stock opened at Rs 166.50, up 2.39% from its previous close, and reached an intraday high of Rs 172.50, marking a 7.23% gain. It eventually settled 1.62% higher at Rs 163.48.
,JM Financial Services initiated coverage on the stock with a 'sell' rating and set a price target of Rs 144 per share, citing that the stock appears 'too expensive for a broking business'. In contrast, global brokerage Jefferies initiated coverage with a 'buy' rating and set a price target of Rs 180 per share.
,JM Financial flagged a key risk to the company's business model, citing a 29% decline in Groww's broking orders over two quarters in FY25 following regulatory curbs on derivatives trading. Similar concerns have affected peers such as Angel One.Growth Projections,
Jefferies projected revenue growth at a compound annual growth rate of 29% over FY26 to FY28, noting that Groww's product velocity model mirrors that of US-based trading platform Robinhood.
,Remember, this is a perspective on the current market situation, not a prediction. It's essential to do your own research and consider multiple viewpoints before making any investment decisions.
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