Groww shares jump over 3% but still down 22% from record high. What should investors do?
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Shares of Billionbrains Garage Ventures, the parent of Groww, climbed as much as 3.4% to an intraday high of Rs 157.25 on the BSE on November 25, staging a rebound after nearly 4% slide in the previous session. Following its strong post-listing rally, the stock now trades about 22% below its all-time peak of Rs 194. Despite the recent bouts of volatility, analysts maintain that Groww’s long-term story remains intact, anchored by its dominant digital platform, and low customer acquisition costs. These competitive advantages are clearly visible in its financial metrics. Groww’s profitability far outstrips that of listed peers — the company operates with a net profit margin of nearly 47%, more than double Angel One’s 22.3%, while its return on net worth stands at 37.57% versus Angel One’s 20.85%. Investors, experts say, are paying a premium for this combination of rapid growth, digital leadership and strong operating leverage. However, conce...