Groww's stock ticked higher on Monday after Motilal Oswal started covering the company and gave it a buy call.
Motilal Oswal's Buy Recommendation
The brokerage set a price target of Rs 185 per share, which is about 19% above the closing price on Monday. It also upgraded the stock to a "buy" rating.
Why the Brokerage Is Positive
- Fast growth: In just four years, Groww has become India's biggest retail broking platform by active clients.
- Market share: It held roughly 26.8% of the market in November, beating the next competitor by about nine points.
New Growth Levers
Motilal Oswal says Groww is adding several new businesses to boost earnings and lower reliance on pure broking fees:
- Expanding margin‑trading services
- Growing its commodities trading arm
- Increasing the loan‑against‑shares portfolio
- Entering wealth‑management services
Changing Revenue Mix
The broker expects the share of broking revenue to drop from 85% today to about 67% by FY28, making earnings more stable.
Potential Upside
With the new price target, the stock could rise roughly 19% from its current level, offering a modest upside for investors who buy now.
Remember, this is just one analyst’s view, not a prediction. Do your own research or talk to a qualified advisor before making any investment decisions.