Groww’s valuation in the unlisted market has surged, with implied market caps crossing $11B at peak prices. But does its profitability justify the hype compared to listed peers like Angel One? Let’s break it down.
Introduction
The Indian broking industry is in the spotlight. On one side, we have Angel One, a listed veteran with decades of presence. On the other, Groww, the millennial-focused disruptor, still trading in the unlisted space but commanding eye-watering valuations. With investors snapping up Groww’s shares at rising prices, a fundamental question arises: are these valuations truly justified?
Profitability Snapshot
- Angel One (FY25 PAT): ₹1,172 Crores
- Groww (FY25 PAT): ₹1,824 Crores
Groww has already overtaken Angel One in absolute profits. However, the gap between their valuations is even more striking.
Market Cap Comparison
- Angel One (Listed Market Cap): ₹20,374 Crores (~$2.3B)
- Groww (Unlisted Market Cap): ₹57,534 Crores (~$6.56B)
(At ₹96.56/share in the last placement and ~595.6 crore outstanding shares)
Now let’s see where Groww stands depending on the unlisted share price:
- At ₹100/share: ₹56,584 Crores (~$6.75B)
- At ₹125/share: ₹74,480 Crores (~$8.44B)
- At ₹140/share: ₹83,417 Crores (~$9.45B)
- At ₹155/share: ₹92,355 Crores (~$10.46B)
This means Groww is already valued at 3 to 5 times Angel One, despite being unlisted.
Is the Premium Justified?
- Growth & Branding
Groww’s user-first digital model, sleek interface, and millennial adoption give it a growth premium. Angel One, though profitable and tech-enabled, is still seen as more traditional. - Scale of Opportunity
India’s retail participation in equities and mutual funds is still underpenetrated. Groww, with its aggressive onboarding and digital campaigns, is betting on capturing the next 50 million investors. - Risk Factors
- Regulatory risks: SEBI’s scrutiny on fintech brokers could limit hyper-growth.
- Valuation risk: At $10B+, investors are paying upfront for years of expected expansion.
- Peer discount: Angel One offers stable profits at just one-fourth of Groww’s valuation.
Investor Takeaway
At today’s unlisted prices, Groww trades more like a high-growth tech unicorn than a conventional broking firm. While its revenue model, digital branding, and profitability justify a premium, the valuation gap versus Angel One is massive.
For long-term believers in fintech disruption, Groww offers a play on India’s digitization. But for value-conscious investors, Angel One presents a safer, cheaper bet with strong dividends.
Conclusion
Unlisted markets thrive on scarcity and future potential. Groww’s shares may indeed be “worth it” for those chasing growth, but investors must recognize they are paying today for profits expected in 2030. A balanced portfolio may demand exposure to both the disruptor (Groww) and the incumbent (Angel One).
📌 Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence before investing in unlisted or listed securities.