{"id":145922,"date":"2025-11-21T05:57:11","date_gmt":"2025-11-21T05:57:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/145922\/"},"modified":"2025-11-21T05:57:11","modified_gmt":"2025-11-21T05:57:11","slug":"groww-shares-rebound-6-ahead-of-q2-results-heres-what-analysts-expect","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/145922\/","title":{"rendered":"Groww shares rebound 6% ahead of Q2 results; here\u2019s what analysts expect"},"content":{"rendered":"

Shares of newly listed Billionbrains Garage<\/a> Venture, the parent of online brokerage Groww<\/a>, staged a sharp rebound on Friday, rising as much as 6% to Rs 166 on the BSE ahead of the company\u2019s Q2 results. The uptick offered much-needed relief to investors after the stock slumped 17% over the previous two sessions, cooling off from its explosive post-listing surge. The company will announce its second-quarter earnings later in the day.<\/p>\n

The broader backdrop for the brokerage sector remains weak. According to Prashanth Tapse, Sr VP and Research Analyst at Mehta Equities, most Indian brokerage firms faced noticeable pressure in Q2 due to a slowdown in overall trading activity.<\/p>\n

A decline in derivatives volumes following recent regulatory tightening has hit revenues across the industry. With speculative and high-frequency traders pulling back, earnings have softened for nearly every major brokerage.<\/p>\n

The strain is visible even among the largest players. The country\u2019s second-biggest retail broker reported a 20\u201321% drop in revenue and a sharp 40\u201350% decline in profit, marking one of the toughest quarters in recent years.<\/p>\n

Against this backdrop, Groww enters Q2 with both expectations and caution surrounding it. While the sector has slowed, Groww may still deliver stable to slightly positive revenue growth, supported by its large user base. The company has also been sharpening its cross-selling efforts, offering more investment options and features to existing customers, which could help sustain revenue this quarter.
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Also Read | Groww Q2 results today: What to expect as the market awaits first post-listing scorecard<\/a>However, experts say the long term demand is supported by Groww\u2019s dominant platform, low customer acquisition costs and proven scalability. Those strengths are visible in the numbers. Groww\u2019s high margins help explain the premium. It has a net profit margin of nearly 47% compared with Angel One<\/a>\u2019s 22.3% and a return on net worth of 37.57% compared with Angel One\u2019s 20.85%. Investors are paying up for its faster growth, digital dominance and strong operating leverage. However, analysts suggest that valuations seem stretched. Groww is already valued at about 34 to 44x FY25 earnings, which is a clear premium to Angel One at 20x and Anand Rathi at 25x. With the market capitalization now above Rs 1 lakh crore compared with around Rs 61,000 crore during the IPO, the valuation gap has widened sharply.<\/p>\n

Groww shares<\/a>, after listing at a 14% premium on the BSE, rallied 94% all within a week following its stock market debut on November 12. The post-listing gains were driven by fear of missing out (FOMO) among retail investors who initially skipped the IPO due to the low GMP, which indicated that a subdued listing was on the cards. <\/p>\n

Analysts acknowledge that the highly anticipated regulatory tightening by SEBI in the futures and options segment could hit margins immediately since that segment forms a significant share of broking revenue. <\/p>\n

The IPO was subscribed 17 times, led by qualified institutional buyers at more than 22 times, while the retail portion was taken up 9 times and non institutional investors subscribed 14 times. That conviction was backed by Groww\u2019s financial strength. The company posted FY25 profit after tax of Rs 1,824 crore and delivered a return on net worth of 37.57% with a scalable, asset light business model that the GMP did not seem to capture.<\/p>\n

At about 9:35 pm, shares of Groww were trading at Rs 165 per share, higher by 5.4% from the last close. <\/p>\n

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of newly listed Billionbrains Garage Venture, the parent of online brokerage Groww, staged a sharp rebound on…\n","protected":false},"author":2,"featured_media":145923,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[25515,97985,138,246,94507,97984,97983,97981,97982,111,139,69,244,245],"class_list":{"0":"post-145922","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-angel-one","9":"tag-billionbrains-garage","10":"tag-business","11":"tag-finance","12":"tag-groww","13":"tag-groww-news","14":"tag-groww-share-price","15":"tag-groww-shares","16":"tag-groww-stock-price","17":"tag-new-zealand","18":"tag-newzealand","19":"tag-nz","20":"tag-personal-finance","21":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/145922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=145922"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/145922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/145923"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=145922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=145922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=145922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}