Institutional investors increase stakes in Groww: Buy, sell, or hold?
FIIs and mutual funds raise holdings in Groww amid strong performance
1Institutional confidence in Groww rises
Foreign Institutional Investors (FIIs) and Mutual Funds increased their holdings in Groww's parent company Billionbrains Garage Ventures during June 2026 quarter. This move signals growing confidence among large investors in the company's ability to capitalize on India's expanding retail investment market. The digital investment platform continues to attract institutional attention despite short-term stock volatility.
2Strong Q1 performance beats expectations
Groww reported impressive Q1FY27 results with net profit surging 94% YoY to Rs 735 crore and revenue jumping 66%. This robust performance reinforced positive views from leading brokerages. Firms like Jefferies, JM Financial and Motilal Oswal maintained 'Buy' ratings while raising their price targets, reflecting optimism about the company's growth trajectory.
3Brokerage insights and price targets
Jefferies maintained a positive stance with a Rs 250 target price, suggesting 21% upside potential. The brokerage highlighted Groww's positioning to benefit from India's shift from traditional fixed-income products to equity investments. JM Financial upgraded its rating from 'Sell' to 'Buy', citing improving cost-to-income ratio and raising its target to Rs 250 from Rs 170.
4Multiple growth drivers identified
Analysts point to several growth opportunities for Groww, including market share gains, higher revenue per order, and expansion into new products like Margin Trading Facility (MTF) and Loan Against Securities (LAS). The company's wealth management services are also expected to contribute to customer asset base expansion, providing additional revenue streams.
5Valuation considerations and risks
Groww shares currently trade at about 45 times FY27 estimated earnings, with an expected three-year EPS CAGR of 30%. While long-term prospects appear strong, short-term investors should monitor valuation comfort and market volatility. The stock's premium valuation reflects growth expectations but may present near-term risks during market corrections.
6Long-term investment perspective
The increasing institutional ownership, operational efficiency improvements, and positive brokerage commentary underscore confidence in Groww's long-term growth story. The company's expanding ecosystem, growing retail participation in equities, and institutional backing present compelling reasons for long-term investors to consider holding the stock despite short-term fluctuations.
Original article: Economic Times — Groww hisse senetlerinde kurumsal yatırımcı ilgisi artıyor