The stock of online investment platform Groww, listed as Billionbrains Garage Ventures on the bourses, rallied over 9 percent to hit its all-time high. The sharp uptick in the scrip came after Bank of America initiated coverage of the stock with a ‘buy’ rating. The global investment institution has set a target price of Rs 235, with an upside potential of over 10 percent at the current price.The stock on Wednesday opened about 2.7 percent higher at Rs 199.95 compared to the previous close of Rs 194.70 apiece. During the trade, it further rose to Rs 212.95 apiece, which is the all-time peak of the scrip. This was almost 9.3 percent higher than the previous close. BofA Securities expects the company to post revenue growth of 30 percent CAGR (compound annual growth rate) between FY26 and FY28 on the back of rising retail investing in the country.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins and PAT (profit after tax) margins may also expand to 67 percent and 52 percent, respectively, by FY28, according to BofA estimates.
Since its listing in November last year, the stock price has more than doubled from the issue price of Rs 100. Over the past month, the scrip has jumped more than 33 percent. Last month, JPMorgan had also initiated coverage of the stock with an ‘overweight’ rating. It had set a target price of Rs 210. UBS, on the other hand, had set a target price of Rs 185 with a ‘neutral’ rating.The company had reported revenue of Rs 784 crore in the December quarter compared to Rs 687 crore in the previous quarter.Its net profit also rose to Rs 428 crore in Q3 from Rs 354 crore in the previous quarter.