Shares of online investment platform Groww rose marginally after brokerage firm Motilal Oswal issued a positive outlook, projecting up to 19% upside potential in the stock.
What Motilal Oswal Says
- Groww’s broking revenue contribution is expected to decline to 67% by FY28, from about 85% in FY25
- This indicates a reduced dependence on broking income over time
Why This Matters
According to Motilal Oswal:
- A more diversified revenue mix should lead to a more stable and less volatile earnings profile
- Groww is seeing increasing contributions from mutual funds, wealth products, IPO distribution, and other financial services
- This diversification helps the company navigate market cycles more effectively
What It Means for Investors
- The shift beyond pure broking is viewed as a long-term positive
- While the stock did not see a sharp rally, the report has supported investor sentiment
👉 Overall, Motilal Oswal believes Groww’s evolving business model is becoming more balanced and resilient, which could unlock value for shareholders over the long term.
