Kolkata: PhysicsWallah is referred to as the country’s first pure-play edtech firm to float a public issue with its IPO opening in November 2025. The upper band of the price band was Rs 109 and the listing price was Rs 145 on NSE and Rs 143 on BSE. On Friday, Feb 27, Physicswallah shares ended the session at Rs 85.97, down Rs 3.33 or 3.73%. Therefore, many investiors who entered at the IPO and have held on to the shares want the price to first reach the offer price at least. Domestic brokerage JM Financial has assigned a Buy rating and a target price of Rs 110, implying an upside of approximately 28% from the current levels. Let’s have a closer look.
Why the bullishness
JM Financial believes PhysicsWallah’s online business has strong margin expansion potential, while maintaining a cautious stance on the offline segment. The stock has been under pressure since listing. JM Financial has set a target price of Rs 110 for March 2027 — one year from now. This target represents a potential upside of approximately 28% from current levels. It is also close to the IPO price of Rs 109. The brokerage believes the company’s core online business has strong potential for margin expansion and operational efficiency is gradually improving.
In fact, JM Financial has valued the online business at a 30x adjusted EBITDA multiple, while the offline business has been valued at a 10x multiple. It says that offline expansion has higher scaling risks and geographic challenges.
Stock under pressure
Physicswala’s stock was listed on BSE and NSE on November 18, 2025. It listed on the NSE at 33% premium to the issue price. It reached a high of Rs 162.05 on the day of listing. However, the stock has steadily declined since. At current levels, it is trading approximately 40% below its listing price and approximately 20% below its issue price. The stock’s decline continues with it losing more than 14% in the past week and 27.06% in the past one month.
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