Groww shares soar over 20% in just 3 days! What’s behind the surge today?
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Shares of Billionbrains Garage Ventures, the parent company of Groww, rallied as much as 7% to their day’s high of Rs 172 on Monday to extend gains for a third session in a row. With today’s surge, the stock is up more than 20% over the same period. International brokerage Jefferies initiated coverage on the stock last Friday with a Buy rating, saying India’s largest retail broker by active clients is adopting a Robinhood-like strategy that could drive a 35% compound annual growth in earnings over the next three years as newer products scale up and margins improve. The brokerage has set a target price of Rs 180, implying a 12% upside from the previous BSE close of Rs 161. Jefferies noted that Groww has become the country’s biggest broker by active clients despite entering the broking space only in FY21, capturing a 26% market share versus 16% for the second-largest player. It attributed Groww’s rapid rise to its mutual fund–led customer a...