Groww shares hit all-time high, jump 18% in just 3 sessions! What’s driving the surge?

Shares of Billionbrains Garage Ventures, the parent company of Groww, rallied as much as 5.3% to hit an all-time high of Rs 197 on the BSE on Friday to extend gains for a third session and rally nearly 20% over the same period.

Today’s surge was backed by strong volumes, with around 2 crore shares traded in the first hour, pushing total turnover past Rs 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 is the largest broker in terms of active clients, with a 28% market share, compared with 15% for the second-largest player. This leadership is driven by its strong mutual fund funnel, an easy-to-use UI and UX, and robust word-of-mouth traction.

Last month, a CNBC-TV18 report said that JPMorgan had initiated coverage on Groww with an ‘overweight’ rating and a price target of Rs 210 per share. 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. It also noted the company’s robust cross-selling capabilities and operating leverage, which could enable it to outpace overall market growth.

JPMorgan added that while Groww appears expensive when viewed purely as a discount broker, it looks attractively valued when assessed as a broader internet platform.

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Groww Q3 snapshot

The company posted a 27.8% year-on-year decline in consolidated net profit at Rs 546.93 crore, compared to Rs 757.11 crore in the same period last year. The drop was largely due to a one-time gain of Rs 315 crore, net of tax, recorded in Q3 of the previous fiscal. Excluding this, operating profit after tax rose 24% year-on-year from Rs 442 crore, the company said. The reported net profit is attributable to shareholders.

Revenue from operations, however, showed strong growth, rising 24.8% year-on-year to Rs 1,216.07 crore, up from Rs 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 Rs 428.45 crore, compared with Rs 677.46 crore reported in the corresponding quarter last year.

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