Physicswallah share price gained over a percent in early trade on Friday despite a weak trend in the Indian stock market. Physicswallah shares rose as much as 1.23% to ₹90.35 apiece on the BSE.
The gains in Physicswallah shares came after domestic brokerage firm JM Finance initiated coverage on the recently-listed stock with a bullish view, as it sees significant tailwinds for margin expansion in the company’s core online offerings.
JM Financial initiated coverage on shares with a ‘Buy’ rating and a March 2027 SotP-based target price of ₹110 per share, implying FY28E PER of 70x. Physicswallah share price target implies an upside potential of 23% from Thursday’s closing price. The target price is also near to the Physicswallah shares issue price.
The brokerage firm’s target multiple for appears steep compared with global edtech peers. It believes that other entities commanded similar premiums during their peak growth phases before regulatory shifts and market saturation compressed their valuations.
“Physicswallah warrants this premium as the company is only in the early stages of its monetisation curve,” JM Financial said.
The broking house said it liked Physicswallah’s positioning in the online test prep market as the company’s massive success in the can act as a springboard for its next phase of growth. Furthermore, it believes that the edtech company’s proven model of affordable, high-quality instruction can not only enable it to command market share but also creates a highly scalable operational blueprint.
JM Financial also sees significant tailwinds for margin expansion in the company’s core online offerings as operational efficiencies continue to kick in.
“Consequently, we value the online business at 30x adjusted EBITDA. This valuation reflects our belief in the brand’s ability to sustain long-term revenue momentum through strategic diversification while capitalising on its industry-leading margin potential,” JM Financial said.
Meanwhile, Physicswallah has made significant inroads into the offline market recently, but scaling up brick-and-mortar operations across new geographies remains a complex and high-risk endeavor. History suggests that Offline test-prep brands often have a limited shelf life or face sudden declines due to overexpansion, internal management crises, or shifts in student preferences.
The brokerage firm, therefore, prefers to value Physicswallah’s offline business at 10x adjusted EBITDA multiple, a significant discount to its online business.
Key risks include market saturation in flagship categories (NEET, JEE and Foundation), operational challenges in the offline segment, geographic concentration risk and regulatory challenges, JM Financial said.
Physicswallah Share Price Performance
Physicswallah share price has been continuously falling since its Dalal Street debut. The edtech company was listed on 18 November 2025 on the domestic bourses with a significant premium to the IPO price.
apiece on NSE, a premium of 33% to the issue price of ₹109 per share. It was listed at ₹143.10 on BSE. The stock jumped to a high of ₹162.05 apiece on November 18.
However, PhysicsWallah shares are trading nearly 40% below its listing price and 20% below its issue price. The stock has fallen 26% in one month, and has declined 30% in three months.
Technical Outlook
PhysicsWallah share price corrected sharply by 45% within just 70 days of listing, reflecting persistent distribution and weak post-IPO sponsorship.
“The structure across daily timeframes remains decisively bearish, with lower highs intact and moving averages sloping downward. While is deeply oversold and due for mean reversion, any rebound is likely to be technical in nature. A dead cat bounce toward the 10-day EMA near ₹96.5 and the 20-day EMA around ₹102.5 cannot be ruled out. However, these averages are expected to act as dynamic resistance rather than support,” said Anshul Jain, Head of Research at Lakshmishree Investments.
Volume patterns do not indicate meaningful accumulation. Given the broader structural weakness, PhysicsWallah shares remain a sell-on-rallies candidate until it reclaims key resistance levels with strong follow-through participation, he added.
At 10:55 AM, PhysicsWallah share price was trading 0.39% higher at ₹89.60 apiece on the .
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.