The Wall Street bank said Billionbrains Garage Ventures, which runs the broking platform Groww, is “well positioned to capitalise on India’s retail investing tailwinds,” and expects the company to deliver revenue growth at a 30% CAGR over FY26-28. The initiation adds heavyweight institutional backing to a stock that has already delivered 31% returns in calendar year 2026 alone.
BofA described Groww as having best-in-class profitability, with further room for expansion as operating leverage builds. It projects EBITDA margins rising to 67% and PAT margins to 52% by FY28—an unusually rich margin profile for a growth-stage fintech, which the bank believes sets Groww apart from peers. The brokerage valued the company at 39x FY28 estimated P/E.
The bank flagged two near-term risks: a deterioration in broader capital market conditions, which could crimp transaction volumes and hurt revenue, and the expiry of a six-month post-IPO lock-in period, which could lead to a supply overhang as early investors gain the ability to exit.
Last month, JPMorgan initiated coverage on Groww with an ‘overweight’ rating and a price target of Rs 210 per share.
Groww is the largest broker by active clients, with a 28% market share, compared with 15% for the second-largest player. This leadership is driven by its strong mutual fund funnel, easy-to-use UI and UX, and robust word-of-mouth traction.
