Shares of brokerage firm Groww, listed as Billionbrains Garage Ventures Ltd, are set to hit the Rs 225 mark in a year, according to brokerage Jefferies. The brokerage expects a 22% upside in the stock. As of Monday morning, Groww shares rose 1.60% to Rs 184.80. Around 3.80 lakh shares worth Rs 7.10 crore changed hands in the initial minutes of trading. 

Brokerage firm Jefferies has highlighted strong investor interest in Groww’s long-term growth strategy, with discussions largely revolving around its wealth management ambitions, lending business expansion, customer engagement trends, and the evolving regulatory landscape.

According to Jefferies, investor sentiment on the company remains divided. Optimists are encouraged by Groww’s execution capabilities, expanding product ecosystem, and cross-selling opportunities across its growing customer base. However, skeptics remain cautious about the scalability of its wealth management business and the potential impact of regulatory changes on future growth.

A key focus area for the company is its push beyond its core stockbroking operations. Groww is steadily broadening its offerings across wealth management, mutual fund advisory, and lending solutions while tailoring products to serve different customer segments.

Jefferies believes these newer businesses have the potential to become meaningful contributors over time, estimating that the company’s wealth management vertical could achieve profitability within the next two to three years.

The brokerage also sees further scope for market-share gains in Groww’s core broking business. While the platform commands a strong share of active clients, its share of overall market turnover remains comparatively lower. This gap, according to Jefferies, presents an opportunity for the company to increase trading activity and deepen customer engagement.

Another closely watched metric is the adoption of Margin Trading Facility (MTF) products. Jefferies noted that leveraged trading penetration among Groww’s active traders remains significantly lower than that of competing platforms, suggesting room for future growth.

“MTF penetration is roughly half that of peers,” the brokerage said, indicating an untapped opportunity to improve monetisation from its existing user base.