Groww shares jump over 3% but still down 22% from record high. What should investors do?

Shares of Billionbrains Storage Ventures, the mother or father of Groww, climbed as a lot as 3.4% to an intraday excessive of Rs 157.25 on the BSE on November 25, staging a rebound after practically 4% slide within the earlier session. Following its sturdy post-listing rally, the inventory now trades about 22% beneath its all-time peak of Rs 194.

Regardless of the latest bouts of volatility, analysts keep that Groww’s long-term story stays intact, anchored by its dominant digital platform, and low buyer acquisition prices. These aggressive benefits are clearly seen in its monetary metrics. Groww’s profitability far outstrips that of listed friends — the corporate operates with a web revenue margin of practically 47%, greater than double Angel One’s 22.3%, whereas its return on web value stands at 37.57% versus Angel One’s 20.85%. Traders, specialists say, are paying a premium for this mixture of speedy progress, digital management and robust working leverage.

Nevertheless, issues over elevated valuations are starting to floor. The inventory now trades at roughly 34–44 instances FY25 earnings, sharply increased than Angel One’s 20 instances and Anand Rathi’s 25 instances. With its market capitalisation having surged previous Rs 1 lakh crore, in contrast with round Rs 61,000 crore on the time of its IPO, the valuation hole throughout the sector has widened considerably.

Including to this warning is the potential for regulatory tightening by SEBI within the futures and choices section. Since F&O contributes meaningfully to broking revenues, analysts warn that any rapid curbs might slender margins within the close to time period.

Groww’s inventory has staged one of the vital dramatic post-listings this 12 months. After debuting at a 14% premium on the BSE, shares soared 94% inside every week of itemizing on November 12. A lot of this surge was fuelled by a wave of retail FOMO, say specialists, as many traders who initially ignored the IPO, rushed in after the inventory started climbing.

The IPO itself noticed strong demand, drawing 17 instances subscription. Certified institutional consumers led the cost with greater than 22 instances bids, whereas the retail quota was subscribed 9 instances and non-institutional traders put in 14 instances bids. In FY25, Groww reported revenue after tax of Rs 1,824 crore and delivered a return on web value of 37.57%. (Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t signify the views of The Financial Instances)