Jefferies Recommends 'Buy' on Groww, Sees 26% Upside & Strong Growth

• Jefferies initiated coverage on Groww's parent, Billionbrains Garage Ventures, with a "buy" recommendation.
• Price target set at ₹180 per share, implying a potential 26% upside from current levels.
• Groww is India's largest broker by active clients; Jefferies projects a 35% EPS CAGR (FY26-28) and 29% revenue CAGR (FY26-28).
• Growth driven by broking, new initiatives like MTF and wealth management, and expected 700 bps margin expansion from FY26.
• Despite a current year EBITDA margin decline, new businesses are forecast to contribute 20% of FY28 revenue, narrowing its valuation discount to Robinhood.

Why It Matters: Jefferies rates Groww a "buy" with significant upside, citing strong growth potential and expanding new ventures.