Groww parent shares rise despite ‘sell’ call: Why the stock is defying valuation worries

Groww Shares Price Today: Shares of Billionbrains Garage Ventures Ltd, the parent company of online broking platform Groww, extended their rally for a second straight session on Monday, ending nearly 2 per cent higher, even as domestic brokerage JM Financial initiated coverage on the stock with a ‘Sell’ rating, citing stretched valuations.

Stock movement defies ‘Sell’ call

The stock opened at Rs 166.50, up 2.39 per cent from its previous close, and climbed as much as 7.23 per cent to an intraday high of Rs 172.50. However, it gave up a part of the gains later in the session to settle 1.62 per cent higher at Rs 163.48.

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Despite the brokerage caution, buying interest remained intact, extending the stock’s post-listing momentum.

JM Financial flags valuation concerns

JM Financial Services initiated coverage on Billionbrains Garage Ventures with a ‘Sell’ rating and set a target price of Rs 144 per share, implying downside from current levels. The brokerage said the stock appears “too expensive for a broking business”, particularly in the context of recent regulatory changes.

Shares of the company have already surged 72.5 per cent from their issue price of Rs 100 since listing last month, raising concerns over valuation comfort.

Regulatory curbs weigh on growth outlook

The brokerage highlighted that Groww’s broking orders declined 29 per cent over two quarters in FY25, following regulatory restrictions on derivatives trading. JM Financial noted that reduced derivatives activity poses a key risk to the platform’s near-term growth, adding that similar regulatory headwinds have impacted listed peers such as Angel One.

Contrasting views from global brokerages

Earlier, global brokerage Jefferies had initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 180 per share. Jefferies said Groww’s product-velocity driven model is comparable to US-based trading platform Robinhood.

The brokerage expects the company’s revenue to grow at a 29 per cent CAGR over FY26–FY28, driven by user expansion, cross-selling of financial products and improved monetisation.

Stock remains in spotlight post listing

With contrasting brokerage views and strong post-listing gains, Billionbrains Garage Ventures remains firmly in focus. While valuation concerns are emerging, investor interest suggests the market is still betting on Groww’s long-term fintech growth story.