Last Updated:
Shares of Groww’s parent company Billionbrains Garage Ventures are continuously gaining attention and attracting the attention of investors. Within a few days of listing, the share price has almost doubled, due to which curiosity and discussion has increased in the market. Now the big question is whether after such a sharp rally, investors should book profits or hold.
Mumbai. Newly listed stock Billionbrains Garage Ventures Ltd (parent company of Groww) also closed with tremendous gains on Tuesday. The stock jumped 10.95 percent to reach the day’s high of Rs 193.91 on BSE. This price is about 94 percent above its IPO price of Rs 100. The company’s IPO of Rs 6,632 crore was open from 4 to 7 November, in which strong interest was seen from investors. There has been continuous buying of the stock since its listing, which has made it the new favorite of the market.
Valuations are high, experts said – caution is necessary
Market experts believe that the current prices of Groww certainly look attractive, but the valuations are now quite high. Kranti Bathini, equity strategy director, WealthMills Securities, said that Groww’s valuation looks ‘stretched’ in the short to medium term. He advised that IPO investors may consider booking some profits at this level. According to Bathini, the company has made a big mark in financial services as a digital platform, but it would be better to wait for the results of the coming quarters before taking any major decision.
Strong support at Rs 175 on technical charts
Arpit Beriwal, derivatives analyst at Motilal Oswal Financial Services, said that the chart history of the stock is very short, so the levels will have to be tracked carefully. He said that the level of Rs 175-174 will act as the main support for the stock. If the stock trades above this level, the trend will remain positive. However, the pressure may increase if it slips below. Despite the current boom, he has advised investors to proceed with caution.
First result will come soon – increased curiosity in the market
Groww was listed on November 12, and now the company will present its quarterly results in listed form for the first time on November 21. The market is very excited about this result, because it will reveal the real financial position and growth trend of the company. If the numbers come in strong then the stock may see further rise, but weak results may put brakes on the current rally. Therefore, at present, investors need to keep an eye on the support level, company data and market sentiment.
