Billionbrains (GROWW)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• 5-year revenue CAGR of 61.18% with latest quarterly sales of ₹1,216 Cr shows strong growth.
• ROE of 28.72% and ROCE of 62.57% reflect high capital efficiency.
• Debt/Equity of 0.03 gives the balance sheet significant stability.
• Latest quarter net profit of ₹547 Cr demonstrates meaningful current earning power.

Concerns

• Profit growth is -27.76% despite sales growth, and free cash flow is deeply negative at -₹1,372 Cr.
• Valuation is expensive at P/E 62.53, P/B 10.63, and PEG 2.52.
• Piotroski F-Score of 4/9 suggests deteriorating fundamentals.
• Zero dividend yield means investors rely entirely on price appreciation.

AI Analysis

At first glance, Billionbrains looks like a wealth compounder in the BSE/NSE broking space. Revenue has grown at 61.18% annually over five years, latest quarter sales are ₹1,216 Cr, and net profit is ₹547 Cr. The return on equity of 28.72% and ROCE of 62.57% are outstanding, while debt/equity of just 0.03 shows they are not funding growth with borrowed money. That is exactly what I look for in a business. But the price matters. At ₹217.65, the market cap is ₹1.01 lakh Cr, or 62.53 times earnings and 10.63 times book value. Benjamin Graham would say there is no margin of safety here. Worse, profit growth is negative at -27.76% despite sales growth of 24.78%, and the company generated negative free cash flow of -₹1,372 Cr. That is a major contradiction: reported profits without cash can be an accounting mirage. The Piotroski score of 4/9 reinforces my caution. A dividend yield of 0.00% means the investor is entirely dependent on price appreciation, and promoter holding at 27.81% is not a controlling vote of confidence. Stockbroking is a cyclical business, and paying 62 times earnings in the middle of a bull market is how investors destroy capital. The PEG ratio of 2.52 suggests even expected growth is not cheap. I would not buy at this price. If the business can maintain its ROE, convert profits into cash, and resolve the earnings decline, I can wait for a lower price or better fundamentals. Intrinsic value is hard to estimate, but 62 times earnings for a business with falling profits and negative FCF is not a value proposition.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer