3 key reasons why Jefferies values Groww at premium over Angel One
Jefferies, which initiated coverage on Groww with 'Buy' today, said there is a greater scope for operating leverage in Groww than Angel One.
- Dec 19, 2025,
- Updated Dec 19, 2025 2:13 PM IST
Jefferies on Friday said it values Billionbrains Garage Ventures Ltd (Groww) at a premium to Angel One considering its higher growth, better margins & lower futures & options (F&O) exposure. It estimated Groww's revenues to grow 30 per cent over till FY28 against a consensus expectation of 18 per cent growth in Angel One. This, it said, is a function of Margin Trading Facility (MTF), and commodities being relatively new products for Groww and its younger client base.
Jefferies, which initiated coverage on Groww with 'Buy' today, said there is a greater scope for operating leverage in Groww than Angel One. It said Angel One has stepped up brand building over the last two years with marketing & advertising standing at 17 per cent of revenues, and 3 per cent of revenues being spent on IPL sponsorship. This sponsership has three years more to go.
In contrast, it does not expect a material step up in marketing & advertising costs for Groww given its reliance on 'word of mouth' & organic traffic. "We have built higher costs related to the wealth management acquisition & investment," it said.
Also, Jefferies said lower F&O exposure also favours Groww. It said 70 per cent of Groww's transaction revenues come from derivative against 80 per cent for Angel One.
"Adjusting for growth, Groww is trading at a 10 per cent premium to Angel One," it said.
In short, Jefferies said Groww is trading at a premium to most broking peers due to better growth & profitability. It noted that it quoting at a 50 per cent discount to US' Robinhood.
"Adjusted Ebitda margin for Groww has increased from 36 per cent in FY23 to 59 per cent in FY25. This is higher than both Robinhood & Angel One. We expect margins to contract in FY26e, due to lower broking revenues & wealth management acquisition being break-even," Jefferies said.
It, however, expects 700 bps expansion from FY26e trough led by ramp up of new products, increasing ARPU and marketing spend being similar to other internet peers. The foreign brokerage suggested a Rs 180 target on Groww.
Jefferies on Friday said it values Billionbrains Garage Ventures Ltd (Groww) at a premium to Angel One considering its higher growth, better margins & lower futures & options (F&O) exposure. It estimated Groww's revenues to grow 30 per cent over till FY28 against a consensus expectation of 18 per cent growth in Angel One. This, it said, is a function of Margin Trading Facility (MTF), and commodities being relatively new products for Groww and its younger client base.
Jefferies, which initiated coverage on Groww with 'Buy' today, said there is a greater scope for operating leverage in Groww than Angel One. It said Angel One has stepped up brand building over the last two years with marketing & advertising standing at 17 per cent of revenues, and 3 per cent of revenues being spent on IPL sponsorship. This sponsership has three years more to go.
In contrast, it does not expect a material step up in marketing & advertising costs for Groww given its reliance on 'word of mouth' & organic traffic. "We have built higher costs related to the wealth management acquisition & investment," it said.
Also, Jefferies said lower F&O exposure also favours Groww. It said 70 per cent of Groww's transaction revenues come from derivative against 80 per cent for Angel One.
"Adjusting for growth, Groww is trading at a 10 per cent premium to Angel One," it said.
In short, Jefferies said Groww is trading at a premium to most broking peers due to better growth & profitability. It noted that it quoting at a 50 per cent discount to US' Robinhood.
"Adjusted Ebitda margin for Groww has increased from 36 per cent in FY23 to 59 per cent in FY25. This is higher than both Robinhood & Angel One. We expect margins to contract in FY26e, due to lower broking revenues & wealth management acquisition being break-even," Jefferies said.
It, however, expects 700 bps expansion from FY26e trough led by ramp up of new products, increasing ARPU and marketing spend being similar to other internet peers. The foreign brokerage suggested a Rs 180 target on Groww.