Jefferies Initiates 'Buy' on Groww, Sees 26% Upside & Robinhood-like Growth

• Jefferies initiated 'Buy' rating on Groww (Billionbrains Garage Ventures) with a target price of Rs 180, projecting a 26% upside.
• Groww, despite starting in FY2021, is now India's largest brokerage by active clients, with a business model akin to Robinhood.
• Brokerage forecasts 35% EPS CAGR (FY26-28) driven by broking, MTF, and wealth management growth, and 700 bps margin expansion.
• New initiatives like MTF and wealth management are expected to contribute 20% of total revenue by FY28, up from 1% in FY25.
• Groww is valued at a 30% discount to Robinhood but offers superior growth, with potential for valuation gap to narrow.

Why It Matters: Jefferies rates Groww 'Buy' with 26% upside, citing strong growth potential and Robinhood-like model.