Groww Share Price Target: Should You Buy, Sell or Hold Billionbrains Garage Ventures Stock?

Shares of Billionbrains Garage Ventures, the parent company of Groww, snapped a two-day winning streak and fell nearly 2% in trade on Thursday, even after the company posted a sharp jump in Q1FY27 earnings. The stock was trading at Rs 212, having gained around 9% over the previous two sessions. Kotak Institutional Equities retained its 'Buy' rating on the stock following the results, with a fair value of Rs 245 implying an upside of about 13% from the current market price of Rs 216.

Why Kotak Retained Its Buy Rating on Groww

The report noted Groww's valuations sit at the upper end of capital markets stocks, but views this as justified given its industry-leading growth and margin profile, even as the company continues to widen its product offering. Revenue diversification efforts are expected to drive a revenue CAGR of over 20% through FY2028, and Kotak pointed to Groww's continued market share gains,the company added 4 million transacting users in FY2026. Its share of industry turnover dipped slightly in cash to 15.1%, but improved in F&O to 11%, while its notional turnover share in commodities stood at about 29%. It expects return on equity (RoE) for the consolidated business to be in the 25-30% range going forward.

The report also flagged regulatory intervention, particularly in the F&O segment, along with execution of the company's growth strategies, as the key risks to monitor on the stock.

Groww's Q1FY27 Results

Revenue from operations grew 66% year-on-year, while EBITDA nearly doubled and margins expanded to 65% from 62% in the previous quarter. Kotak noted that this came despite a normalisation in trading activity from the elevated levels seen in Q4FY26, with the moderation in order volumes largely offset by improved realisation from margin trade financing (MTF).

Groww Share Price Target: Buy, Sell or Hold?

According to Kotak Neo Research, the valuation is supported by Groww's earnings growth, expanding margins, continued market share gains and improving revenue diversification. The research note, however, identified regulatory changes in the F&O segment and execution of growth initiatives as the key risks to the investment thesis.

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