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Groww Shares Continue Remarkable Rally: Should You Invest?
Investor enthusiasm for Groww has surged following its stock listing, which received robust interest from both institutional and retail sectors. As of Thursday at 11:45 p.m., the market capitalization of Billionbrains Garage Ventures, Groww’s parent company, stood at approximately Rs 90,863 crore, edging closer to the Rs 1 lakh crore mark.
– The stock soared by 11% on its second consecutive day of gains, reaching an impressive peak of Rs 153.50 on the BSE.
– This marks a significant 53.5% gain for IPO investors who acquired shares at Rs 100.
– Compared to its listing price of Rs 114, the stock has appreciated by 34.6%.
Analysts’ Insights on Groww’s Investment Appeal
Analysts are analyzing Groww’s structural strengths and long-term growth potential. Prashanth Tapse, Senior VP (Research) at Mehta Equities, stated, “Groww’s listing surpassed our expectations, with its valuation justified by rapid customer growth—over 10 crore registered users—and a scalable digital business model.”
Tapse views Groww as a compelling long-term investment opportunity, reflecting the rise of India’s capital market participation.
For post-listing investment guidance, Tapse recommends:
– Allotted Investors: Hold shares long-term, with a target of Rs 125–130 in the medium term, despite short-term market risks.
– Non-Allotted Investors: Consider accumulating shares and monitor for meaningful dips.
Master Capital Services highlighted a thrilling subscription rate of 17.60 times during the IPO, underlining investor confidence. The firm’s report indicated a CAGR of 52.74% in active users on Groww’s platform from the start of FY 2023 through June 30, showcasing the company’s robust market presence.
Shivani Nyati, Head of Wealth at Swastika Investmart, also expressed optimism, noting, “Groww’s strong debut signaled healthy investor confidence, driven by brand recognition and rapid user growth.”
However, she cautioned about high valuation multiples and regulatory challenges within the fintech space, advising investors to book partial profits before holding shares for the medium to long term, setting a stop loss of Rs 80.
As India’s digital investment landscape evolves, Groww is seen as a vital player benefiting from these transformative shifts, enhancing its offerings in equity trading, mutual funds, and more.
Conclusion
With steady growth in user engagement and positive analyst sentiments, Groww presents an intriguing opportunity for investors. Whether you’re a long-term holder or a potential buyer, it’s essential to stay informed about market dynamics and assess your investment strategy accordingly.