Can Groww Sustain High Growth After Emerging as India’s Largest Broker
About Jefferies’ Initiation on Groww
Jefferies has initiated coverage on Groww with a Buy rating and a target price of ₹180. The brokerage notes that Groww has already emerged as the largest broker in India in terms of active clients, despite starting operations only in FY21.
Groww’s rapid scale-up reflects a structural shift in India’s retail investing landscape, where digital-first platforms with simplified user experience are gaining market share from legacy intermediaries.
Key Growth Levers Identified by Jefferies
🔹 Strong leadership in active client base despite a short operating history.
🔹 Broking business expected to grow at ~19% CAGR driven by client vintage maturation and market share gains.
🔹 New initiatives such as Margin Trading Facility and Wealth Management projected to grow ~5x.
🔹 Margin expansion of ~700 basis points as operating leverage plays out.
Jefferies estimates that these combined drivers could deliver an EPS CAGR of around 35% over FY26–FY28E. The thesis hinges on Groww’s ability to monetise its expanding user base more effectively while scaling newer revenue streams beyond core broking.
Peer Comparison – Online Broking Platforms
| Company | Client Growth Trend | Business Focus |
|---|---|---|
| Groww | Market leader in active clients | Broking + new financial products |
| Zerodha | Stable, mature base | Low-cost broking |
| Angel One | Moderate growth | Broking + advisory |
The peer comparison highlights Groww’s differentiated positioning, where client scale is being leveraged to build adjacent revenue streams rather than relying solely on transaction-led income.
👉 Fast-growing platform businesses are often analysed alongside broader market trends tracked through Nifty Tip.
Investor Takeaway: Derivative Pro & Nifty Expert Gulshan Khera, CFP® believes Groww represents a new-age financial platform story where scale, operating leverage, and product expansion converge. If execution remains strong, the company could sustain high earnings growth over the medium term. Track such evolving brokerage and fintech themes at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
