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
- GrowwтАЩs 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
ЁЯСЙ Overall, Motilal Oswal believes GrowwтАЩs evolving business model is becoming more balanced and resilient, which could unlock value for shareholders over the long term.
