Groww Target Price: Groww in sweet spot as Jefferies sees ample headroom in India’s MTF book

September 8, 2026 / Kim Browne /


Groww MTF book: Jefferies has said that Billionbrains Garage Ventures Ltd, the parent of stock broking platform Groww, is well placed to benefit from the rapid expansion of margin trading facility (MTF) book, which has grown nearly 2x in the last two years. 

 

According to the Jefferies note, India’s margin trading book has enough room to grow and at the end of August month, the size of MTF book was ₹1.5 trillion.

 

While India’s margin trading book has grown at 34 per cent CAGR over the last two years, it is still smaller than developed markets, where MTF book is 2x of cash ADTO. In India, it is 1.1x of cash ADTO.

  

“This is a fraction of the overall cash turnover, which was ₹280 trillion in FY26, and 1.1x of daily cash turnover,” the note said.

  

Groww’s MTF book Against this backdrop, Groww’s MTF book has potential to nearly triple to ₹100 billion in the next few years, Jefferies said.

 

Notably, Groww’s MTF book has grown 6x since FY25 to ₹38 billion, with 1.1 per cent of active cash broking customers using MTF in 1QFY27. For peers, MTF penetration within active stock traders is 2.5-3 per cent.

 

ICICI Securities, Kotak Securities and HDFC Securities, together have around 40 per cent market share in MTF. On the other hand, Groww, Zerodha and Angel One have 15 per cent market share, up from 10 per cent in June 2025 despite bank led brokers offering plans with lower rates.

 

Groww, it said, is providing MTF in around 1,600 stocks. It sees Groww’s MTF book growing to ₹100 billion, 2.7x till FY29e, implying 4.8 per cent market share by FY29e vs 5-7 per cent market share for Angel One and Zerodha at present.  ALSO READ: Stock Market LIVE: Sensex extends losses, down 500 pts  Revenue contribution Jefferies said that MTF will become a significantly larger contributor to Groww’s revenue in the coming years. Its share in revenue is projected to rise to 14 per cent by FY29E from 5 per cent in FY26.

 

“Groww’s 3 per cent MTF share is expected to become 5 per cent by FY29e, leading to 14 per cent revenue contribution vs 5 per cent in FY26,” the note said.

 

Meanwhile, Jefferies has cut FY27-29e EPS for Groww by 2-3 per cent accounting for the adverse impact of CAS on options order growth and retail option traders, partially offset by higher commodity orders.  Groww share price target

 

It has marginally lowered the Groww target price to ₹240 from 250. The target is, however, still implies an upside of 25 per cent from the CMP of ₹194.45. 

 

Groww is the largest broker in India by active clients, despite having started the business only in FY21.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.

 

 



Source link

Posted in

Kim Browne

As an editor at Cosmopolitan Canada, I specialize in exploring Lifestyle success stories. My passion lies in delivering impactful content that resonates with readers and sparks meaningful conversations.

Leave a Comment