Daily Brief India: Groww, LIC Housing Finance, Seshaasai Technologies, Bajaj Finance Ltd, NIFTY Index, Laurus Labs and more

• Groww (1573648D IN) is looking to raise up to US$803m in its upcoming India IPO. The deal will be run by JPM, Kotak, Axis, Citi and Motilal Oswal.
• Groww, officially called Billionbrains Garage Ventures, is a direct-to-customer (D2C) digital investment platform that provides multiple financial products and services.
• According to the Redseer Report, Groww was India’s largest and fastest growing investment platform by active users on NSE as of June 30, 2025.

• LIC Housing Finance (LICHF) holds a strong position as one of India’s largest housing finance companies, benefiting significantly from the brand equity and extensive network of its parent, Life Insurance Corporation of India (LIC).
• The company has demonstrated robust growth in net income and operating cash flow over the past three years, driven by strong demand in the Indian housing market and a strategic focus on the salaried customer segment.
• While facing intense competition from banks and other housing finance companies, which puts pressure on margins, LICHF is strategically diversifying into higher-yielding segments like project finance and Loan Against Property (LAP) to support future profitability.

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• Seshaasai is the second-largest payments card manufacturer in India (32% market share in FY25) and the largest manufacturer of cheque leaves in India creating a niche cash cow business.
• Growth tailwinds in the core business, driven by premium metal cards and export opportunities, and its RFID and IoT-led offerings position the company for 20-25% growth in the medium term.
• We estimate the IPO has been priced fairly at 18-20 times FY27 earnings and could potentially trade at multiples of 25+.

• Bajaj Finance Ltd (“BAF”)  reported a strong Q1FY26 in terms of growth; however, its credit costs remain elevated due to challenging environment.
• AUM grew INR 24750cr+ in Q1FY26 to reach INR 441450cr. BAF added 13.49mm new loans and acquired 4.69mm new customers during Q1FY26 taking the customer franchise count to 106.51mm.
• BAF envisions FY26 to be a defining year for AI led transformation (FINAI). BAF has been incorporating FINAI capabilities gradually throughout the company. 

• In our previousNIFTY Index insight published at the end of August we highlighted two possible scenarios before the Sep-30 rebalance: 1) risk-off pullback or 2) small rally. 
• Scenario 2), the small rally is what came true, it lasted 3 weeks (we said 2 weeks), but it was a weak rally. The NIFTY however is not very overbought.
• 3-Week rallies not reaching higher highs usually indicate a weakness in the trend, but this could be a buy opportunity, so let’s have a look at our model’s BUY zones… 

• Laurus Labs is shifting from ARV APIs to high-growth areas like CDMO and biotech, diversifying its revenue base for long-term stability.
• Heavy investments in complex, high-margin businesses reduce dependence on volatile ARV markets, ensuring sustainable and more profitable future growth.
• Though returns dipped initially, strong CDMO performance shows the strategy is working, making Laurus Labs a model of successful pharma transformation.

• Groww has established itself as India’s largest investment platform by number of active users, capitalizing on the country’s burgeoning retail investor base and the digital transformation of financial services.
• The company’s growth has been fueled by its user-friendly, mobile-first platform offering a wide range of investment products, including mutual funds, stocks, ETFs, and digital gold, attracting a large number of young, first-time investors.
• While experiencing rapid user and asset growth, Groww‘s revenue is heavily reliant on transaction-based income, making it susceptible to market volatility. The upcoming IPO is a key catalyst that will provide capital for further expansion and product development in a competitive fintech landscape.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• LICHF has been producing below-average growth over the past four years; however FY26 is expected to be a normal year in terms of growth and asset quality.
• Q1FY26 saw growth of 7% YoY in AUM, which is decent considering that Q1 tends to have employee promotions and transfers which disrupt the operations somewhat.
• Asset quality has stabilized with GNPA at 2.6% vs 3.3% YoY, although it has worsened slightly QoQ due to collection delinquencies in some retail loans.