Groww's valuation expensive? Expert weighs in as shares drop 4%
Commenting on the recent listing of Billionbrains Garage Ventures Ltd, the parent company of investment platform Groww, Baliga said the stock's sharp surge was driven largely by technical factors rather than fundamentals.
- Nov 24, 2025,
- Updated Nov 24, 2025 4:38 PM IST
Market expert Ambareesh Baliga on Monday flagged the long-pending US–India trade treaty and the Indian rupee’s depreciation against the US dollar as key negative triggers for domestic equity benchmarks.
Commenting on the recent listing of Billionbrains Garage Ventures Ltd, the parent company of investment platform Groww, Baliga said the stock's sharp surge was driven largely by technical factors rather than fundamentals.
He noted that while the market had expected a modest 5–10 per cent listing premium, the counter instead rallied sharply from its initial public offering (IPO) issue price of Rs 100.
Baliga attributed this unexpected jump to a short squeeze, stating that fresh short positions were added at every higher level. "For a stock like this to move 50–60 per cent is unusual; it moved almost 100 per cent. Fundamentally, it was expensive even at IPO levels and remains expensive now," he said.
He further highlighted upcoming supply pressures. A portion of the anchor book will unlock within a month, while pre-IPO shareholders -- including several HNIs who received allotments near Rs 134–135 -- will become eligible to sell in the next six months.
"Many of those investors are likely to sell once their shares become free. One shouldn't look at the stock purely from a short-term perspective, as a lot can happen due to technical factors in the market. But for the longer term, anyone holding free shares should consider booking profits at this point," he added.
On the financials front, Groww posted a 12.18 per cent year-on-year rise in consolidated net profit for Q2 FY26 at Rs 471.34 crore, compared with Rs 420.16 crore a year earlier. Revenue from operations declined 9.47 per cent to Rs 1,018.74 crore from Rs 1,125.39 crore.
Shares of Groww today slipped 3.82 per cent to close at Rs 151.89. Despite the fall, the stock remains 51.90 per cent above its IPO price. It has, however, declined 21.66 per cent from its post-listing high of Rs 193.91 recorded on November 18.
Market expert Ambareesh Baliga on Monday flagged the long-pending US–India trade treaty and the Indian rupee’s depreciation against the US dollar as key negative triggers for domestic equity benchmarks.
Commenting on the recent listing of Billionbrains Garage Ventures Ltd, the parent company of investment platform Groww, Baliga said the stock's sharp surge was driven largely by technical factors rather than fundamentals.
He noted that while the market had expected a modest 5–10 per cent listing premium, the counter instead rallied sharply from its initial public offering (IPO) issue price of Rs 100.
Baliga attributed this unexpected jump to a short squeeze, stating that fresh short positions were added at every higher level. "For a stock like this to move 50–60 per cent is unusual; it moved almost 100 per cent. Fundamentally, it was expensive even at IPO levels and remains expensive now," he said.
He further highlighted upcoming supply pressures. A portion of the anchor book will unlock within a month, while pre-IPO shareholders -- including several HNIs who received allotments near Rs 134–135 -- will become eligible to sell in the next six months.
"Many of those investors are likely to sell once their shares become free. One shouldn't look at the stock purely from a short-term perspective, as a lot can happen due to technical factors in the market. But for the longer term, anyone holding free shares should consider booking profits at this point," he added.
On the financials front, Groww posted a 12.18 per cent year-on-year rise in consolidated net profit for Q2 FY26 at Rs 471.34 crore, compared with Rs 420.16 crore a year earlier. Revenue from operations declined 9.47 per cent to Rs 1,018.74 crore from Rs 1,125.39 crore.
Shares of Groww today slipped 3.82 per cent to close at Rs 151.89. Despite the fall, the stock remains 51.90 per cent above its IPO price. It has, however, declined 21.66 per cent from its post-listing high of Rs 193.91 recorded on November 18.