Synopsis: Bank of America initiates Buy on Billionbrains Garage Ventures Limited with ₹235 target, citing 30% growth, strong margins, and rising retail participation, while flagging near-term market risks.
This Stockbroking Stock, engaged in providing digital investment platform services, offering trading, mutual funds, derivatives, and financial products through its web and mobile applications, is in focus after Bank of America (BofA) Securities gave a target of Rs. 235, which has an upside potential of 12.71 percent from the previous close.
With a market capitalization of Rs. 1,32,529.73 crores, the share of Billionbrains Garage Ventures Limited has reached an intraday high of Rs. 214.00 per equity share, rising nearly 2.64 percent from its previous day’s close price of Rs. 208.50. Since then, the stock has retreated and is currently trading at Rs. 211.45 per equity share.
Reason Behind the Surge
Bank of America (BofA) Securities, a prominent brokerage firm, has recommended a “Buy” call on Billionbrains Garage Ventures Limited with a target price of Rs. 235 per share, indicating an upside potential of 12.71 percent of its previous day’s close price of Rs. 208.50 per share.
Bank of America (BofA) has initiated a “Buy” rating on Billionbrains Garage Ventures Limited, citing strong growth potential driven by increasing retail investor participation in India. With rising interest in equities and mutual funds, Groww is well-positioned to benefit from this structural trend. Its user-friendly platform and expanding customer base support higher transaction volumes and steady revenue growth over time.
The brokerage expects the company to deliver a robust 30 percent revenue CAGR between FY26 and FY28. It also highlights best-in-class profitability, with operating leverage expected to improve margins as the business scales. BofA estimates EBITDA margins to reach around 67 percent and PAT margins to touch 52 percent by FY28, reflecting strong cost efficiency and earnings growth potential.
Based on these factors, BofA has valued the company at 39x its FY28 estimated earnings, indicating confidence in long-term growth visibility. However, it has flagged near-term risks such as weak capital market performance and the expiry of the 6-month lock-in period, which could create short-term volatility in the stock.
Other Brokerage Viewpoints
Last month, JPMorgan, a prominent brokerage firm, has recommended an “Overweight” call on Billionbrains Garage Ventures Limited with a target price of Rs. 210 per share, indicating an upside potential of 7.86 percent its previous day’s close price of Rs. 194.70 per share, , calling Billionbrains Garage Ventures the most lucrative India listed consumer internet platform.
Business Highlights
Billionbrains Garage Ventures Limited reported strong growth, with total transacting users reaching 20.4 million, up 7 percent QoQ and 25 percent YoY. Customer assets on the platform rose to Rs. 3.0 trillion, driven by steady inflows and increasing retail participation.
The company also gained market share across segments, with mutual funds at 13.7 percent, stocks at 28.8 percent, equity derivatives at 18.1 percent, and margin trading at 2.0 percent, reflecting strong platform adoption and growing presence.
Company Overview
Billionbrains Garage Ventures Limited, which operates as Groww, is a Bengaluru-based fintech company offering a digital investment platform directly to users. It focuses on developing and maintaining software solutions that power its easy-to-use web and mobile apps, enabling access to a wide range of financial products such as stocks, mutual funds, derivatives, IPOs, bonds, margin trading, and personal loans.
Recent Quarter Results
Coming into financial highlights, Billionbrains Garage Ventures Limited’s revenue has increased from Rs. 975 crore in Q3 FY25 to Rs. 1,216 crore in Q3 FY26, which has grown by 24.72 percent. The net profit has decreased by 27.74 percent from Rs. 757 crore in Q3 FY25 to Rs. 547 crore in Q3 FY26.
In terms of return ratios, the company’s ROCE and ROE stand at 62.6 percent and 49.9 percent, respectively. Billionbrains Garage Ventures Limited has an earnings per share (EPS) of Rs. 9.98, and its debt-to-equity ratio is 0.05x.
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