Groww snaps two-day loss; will it follow Ola Electric's rollercoaster path?

Despite the rebound, the stock remains around 13 per cent below its November 18 peak of ₹193.80, achieved less than a week after listing

Shares of online investment platform Billionbrains Garage Ventures (Groww) rebounded on Friday, November 21, rallying 7.45 per cent to hit an intraday high of ₹168.39 on the NSE, snapping a two-day losing streak. Despite the bounce, the stock remains about 13 per cent below its November 18 peak of ₹193.80, reached just days after its market debut.

 

Earlier, on November 12, Groww made a high-profile entry on the bourses, with its IPO priced at ₹100 per share. The stock listed at ₹112 on the NSE and ₹114 on the BSE, giving it a double-digit premium on day one.  The early trading volatility has drawn comparisons with Ola Electric, which experienced a similar post-listing rollercoaster.

 

Bhavish Aggarwal’s Ola Electric, debuted in August 2024 at ₹76 per share, its IPO price, and initially rose 20 per cent to ₹91.18. The stock then surged to an all-time high of ₹157.40 within the same month but has since tumbled to a low of ₹39.60, well below both its IPO and listing prices. Analysts had cautioned that the shares were overvalued at launch. At the latest check, Ola was trading around ₹42 per share, still far from its early highs.

Analysts see stronger fundamentals in Groww

“While Ola did not have the necessary support for its valuation, Groww does,” said Prashanth Tapse, senior vice-president (Research) at Mehta Equities.

 

Ola Electric, Tapse noted, could not deliver on promises related to battery technology, sales, and operations.

 

“Groww, on the other hand, has a strong business model and operational delivery to justify its premium valuation. Initial listing performance was influenced by scarcity of shares, with strong demand from institutions and HNIs. Month-on-month client additions were robust, around 1.3 lakh, while other top brokers saw declines. The 26 per cent market share, coupled with a younger client base, supports higher valuations. Trading at 35–40 times P/E is justified by market share, active users, and growth metrics,” Tapse added.

 

The optimism is further underpinned by the company’s Q2FY26 results. Groww reported a 12.6 per cent sequential rise in consolidated revenue for the September quarter to ₹1,018.74 crore from ₹904.39 crore. Net profit increased 25 per cent quarter-on-quarter (Q-o-Q) to ₹471.30 crore from ₹378.30 crore, while earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 25 per cent to ₹604.04 crore from ₹483.29 crore. The Ebitda margin improved to 59.3 per cent from 53.4 per cent. On a year-on-year (Y-o-Y) basis, net profit rose 12 per cent, while revenue declined 9.5 per cent.

Valuations still a concern for long-term investors

Despite these positive indicators, some analysts remain cautious, warning that it may be too early to make judgments from a long-term investment perspective.

 

“Stock prices are ultimately tethered to earnings, and long-term valuations matter,” said Kranthi Bathini, equity strategist at WealthMills Securities.

 

Groww had a strong listing, supported by liquidity inflows, but the stock, Bathini highlighted, has been volatile. Prima facie, valuations look fully priced.

 

“Investors should wait for sustained earnings—ideally tracking two to three quarters—before making serious investment decisions. Momentum is driving the stock for now. Comparing Groww to Ola Electric is coincidental; the business models are entirely different, but in both cases, valuations need careful examination.”