Stock to Buy: Recently listed stock that can deliver returns of up to 67%

Synopsis:- The brokerage issued a Buy in its bull case with a ₹260 target, implying 68% upside. Strong scale is evident with 26.8% market share. Revenue and EBITDA could grow at 33% and 36% CAGR, respectively, while broking dependence may fall from 85% to 67% by FY28.

India’s stockbroking and allied sector thrives amid booming retail participation. In FY25, demat accounts hit a record 192.4 million, with 41.1 million new additions, the highest ever, reflecting 27.1% growth despite a higher base. The sector, encompassing brokers, exchanges, and depositories, generated nearly Rs 700 billion in revenues, fueled by equity surge and digital access, though regulations tempered margins.

With a market capitalisation of Rs 95,968.56 crore, the shares of Billionbrains Garage Ventures Ltd were trading at Rs 155.30 per share, decreasing around 0.16 percent as compared to the previous closing price of Rs 155.55 apiece.

Brokerage Recommendations

Motilal Oswal has issued a ‘Buy’ rating under its bull-case scenario, assigning a target price of  Rs 260. This implies a potential 68% upside from the current price of  Rs 155.35, reflecting strong confidence in the stock’s earnings recovery and medium-term growth prospects.

The brokerage highlighted that Groww has expanded at a rapid pace, emerging as India’s largest retail broking platform by active clients within just four years of launch. Its 26.8% market share in November stands 9 percentage points ahead of the second-largest competitor, underscoring strong customer acquisition and platform adoption.

Motilal Oswal highlighted that Groww is steadily building optional growth levers to diversify revenues and enhance earnings quality. Expansion in MTF, a rapidly scaling commodities franchise, and entry into wealth management are expected to reduce reliance on volatile broking income, with broking revenue share projected to decline from 85% currently to 67% by FY28.

Motilal Oswal believes Groww is well placed to compound earnings in India’s underpenetrated capital markets. In the bull case, revenue CAGR could reach 33%, while EBITDA CAGR may rise to 36% with margins of ~68%, supported by wealth management monetisation and diversified products.

The company delivered a mixed Q2FY26 performance, with revenue declining 9% YoY to  Rs 1,019 crore from  Rs 1,125 crore. Despite a weaker topline, profitability improved, as net profit rose 12% to  Rs 471 crore, indicating better margins, cost efficiencies, or other income support during the quarter.

The revenue mix shows a gradual diversification away from equity derivatives, whose share declined from 68% in Q2FY25 to 57% in Q2FY26. Meanwhile, stocks contributed ~19%, while MTF, float, and treasury income steadily increased. This shift indicates improving revenue quality and reduced dependence on volatile derivative-led income streams over the past year.

Groww is one of India’s leading digital investment platforms, offering seamless access to stocks, mutual funds, ETFs, derivatives, and wealth solutions. Known for its user-friendly interface and strong retail focus, Groww is steadily diversifying beyond broking into margin funding, commodities, and wealth management, positioning itself for long-term growth in India’s expanding capital markets ecosystem.

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