Shares of Billionbrains Garage Ventures rose around 11 per cent on Tuesday, hitting a fresh post-listing high after brokerages responded positively to its March quarter earnings.
Brokerage firm Citigroup maintained a ‘Buy’ rating on the stock with a price target of Rs 230, noting that core profit before tax rose 27 per cent sequentially and came in about 4 per cent ahead of its estimates. It added that elevated market volatility has supported higher trading volumes in the broking business.
The brokerage also highlighted the company’s continued push into new product offerings such as margin trading facilities, although initial traction has been slower than expected. It said Groww remains focused on a product-led strategy to drive long-term growth.
Meanwhile, UBS retained a ‘Neutral’ rating with a price target of Rs 210, citing strong growth driven by operating leverage and market share gains. It added that improving product metrics and the company’s wealth platform provide additional upside potential, while margins remain balanced amid ongoing investments.
For the March quarter, Groww reported a 25.5 per cent sequential rise in net profit to Rs 686.3 crore, while revenue grew 23.8 per cent to Rs 1,505.3 crore, exceeding expectations of around 17 per cent growth.
EBITDA rose 30.3 per cent to Rs 938.6 crore, with margins expanding to 62.4 per cent from 59.2 per cent in the previous quarter, supported by operating leverage.
The company’s total transacting users increased to 21.6 million, up 6 per cent sequentially and 25 per cent year-on-year, while active users stood at 16.7 million. Total customer assets were Rs 3 lakh crore as of 31 March, down 1 per cent sequentially but up 36 per cent from a year earlier.
Groww also strengthened its position in mutual funds, with market share rising to 14 per cent from 12.3 per cent a year ago.
Groww stock ended 9 per cent higher on the National Stock Exchange (NSE) has now doubled from its issue price of Rs 100 and touched a post-listing high of Rs 214. |
