Groww's IPO valuation debate is heating up as investors weigh a blazing growth story against sober profitability. In the chatter, Groww is pitted against Angel One as a test case for India's 2025 IPO mood. The idea: can a young retail-broking challenger justify sky-high multiples, or is the hype already priced in?
Valuation Snapshot
Groww's IPO size is ~₹7,000 cr, potentially valuing the company at ~₹70–80k cr. FY25 PAT stands at ₹1,824 cr, implying a P/E of ~38–44x, while Angel One (PAT ₹1,172 cr) trades at ~20–22x [2]. The gap raises the perennial question: does Groww deserve roughly 2× the multiple for growth, or is the market simply pricing hype over fundamentals [2]?
Growth vs Hype
The debate mirrors a classic startup story vs. a more mature peer. Growth drivers look attractive, but the price tag invites caution—are investors bidding on future margins and CAC improvements or on a mirage of scale in a crowded retail-broking space [2]?
What to Watch
Post 1 emphasizes the real tests: EBITDA margins, CAC, and churn after listing. The call is to plan a small allotment and to watch the first two quarters closely for actual unit economics rather than early excitement [1].
Retail-Broking Context
India’s retail-broking market is huge, and both Groww and Angel One are viewed as meaningful players in a population that’s increasingly trading and investing—yet that belief alone isn’t a valuation cure [1].
Closing thought: 2025 IPOs will reward clarity on margins and churn as much as growth stories, making cautious positioning sensible for retail investors.
References
Growth or profitability, Groww IPO makes me think of longterm play?
Shares: Groww IPO; long-term view; monitor margins, costs, churn; bullish on Indian retail broking; mentions Angel One; suggests small allotment.
View sourceGroww IPO - Time to buy Angel One?
Groww IPO valuation debate; compare with Angel One's 20–22x, growth story vs hype
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