PhysicsWallah makes solid debut; analysts split on outlook; hold or sell?

PhysicsWallah stock made a solid debut on Dalal Street, listing at ₹145 on the NSE, a 33 per cent premium compared to the issue price of ₹109

PhysicsWallah share price: The highly anticipated listing of Alakh Pandey-led edtech company PhysicsWallah surpassed the market expectations following a muted IPO response. The stock made a solid debut on Dalal Street, listing at ₹145 on the NSE, a 33 per cent premium compared to the issue price of ₹109. After listing, the stock rose further to hit an intraday high of ₹161.99, up nearly 12 per cent from the listing price. 

 

On the BSE, the stock opened at ₹143.1 and touched a high of ₹162.05, marking a around 13 per cent increase from the listing price. 

 

However, the stock pared the gains during the session. At the time of writing, the stock was quoting at ₹149, up 3 per cent from the listing price. In comparison, the NSE Nifty50 index was trading at 25,907 levels, down by 106.05 points or 0.41 per cent.

 

This solid listing came as a surprise, given the low IPO subscription of just 1.92 times. According to National Stock Exchange (NSE) data, the demand was primarily driven by final day participation from Qualified Institutional Buyers with 2.7 times subscription of the reserved portion, followed by retail investors at 1.06 times and Non-Institutional Investors (NIIs) at 48 per cent.  FOLLOW PHYSICSWALLAH SHARE PRICE UPDATES LIVE

PhysicsWallah stock: Should you buy, sell or hold?

Analysts offered mixed opinions on PhysicsWallah, with some advising investors to hold for the medium term, while others suggested booking profits and exiting the stock.

 

According to Shivani Nyati, head of wealth at Swastika Investment, PhysicsWallah's listing reflected investor confidence in the company’s strong brand recall, affordable test-prep offerings, and its fast-growing hybrid model through both online platforms and PW Pathshala centres.

 

"The company’s strengths include a loyal student base, scalable digital content engine, expanding offline footprint, and diversified presence across JEE, NEET, UPSC, and state-level exams. However, competition from other edtech and offline coaching giants, regulatory uncertainties in the education sector, and the challenge of sustaining profitability during expansion remain key risks," she added.

 

Nyati recommended alloted investors to book partial profits and hold the remaining shares for medium-term growth with a stop-loss at ₹130. 

Anil R, research analyst at Geojit Investments, says PhysicsWallah debuted at a premium, with post-listing valuation at FY25 EV/Sales of 13x versus IPO valuation of 10.3x, signaling investor confidence in its disciplined approach and mass-market ambition. 

 

"If performance sustains, this could revive interest in edtech IPOs and set a benchmark for profitability-focused, scalable models in a sector that faced turbulence post-COVID," he said

 

Going forward, the market will closely track the company’s ability to scale its offline presence while leveraging its strong online base and tech integration - key drivers of future valuation, he added.

 

On the contrary, Ravi Singh, chief research officer at MasterTrust, maintained a cautious view, stating that the long-term outlook remains weak. "Investors who were allotted the company's shares during the IPO should book profits at current levels," said Singh.  ALSO READ | Emmvee Photovoltaic share makes muted debut, lists flat at ₹217 on BSE, NSE

PhysicsWallah IPO details

PhysicsWallah raised ₹3,480.7 crore through its initial public offering (IPO), which included a fresh issue of 284.5 million equity shares and an offer for sale (OFS) of 34.9 million shares. The IPO was priced between ₹103 and ₹109 per share, with a minimum application size of 137 shares. The subscription window was open from November 11 to November 13, and the share allotment was finalised on Friday, November 14.

 

As per the company’s Red Herring Prospectus (RHP), PhysicsWallah plans to use ₹460.1 crore for capital expenditure on new offline and hybrid centres, ₹548.3 crore for lease payments of existing centres, ₹4.2 crore for investment in subsidiary Xylem Learning, and ₹28 crore for Utkarsh Classes Edutech. Additionally, ₹200.1 crore will be used for server and cloud infrastructure, ₹710 crore for marketing, and ₹26.5 crore for acquiring an additional stake in Utkarsh Classes Edutech. The remaining funds will be used for inorganic growth through potential acquisitions and general corporate purposes.