PhysicsWallah Shares Jump Over 4% as Motilal Oswal Initiates Coverage with Buy Rating
Key Takeaways
- •Motilal Oswal initiated coverage of PhysicsWallah with a 'Buy' rating and a Rs 200 target price, implying about 66% upside.
- •PhysicsWallah shares surged more than 4% following the coverage initiation.
- •The brokerage cited PW's capital-efficient business model, online dominance, scalable offline network, and low customer acquisition cost as key strengths.
- •Motilal Oswal projected revenue and EBITDA growth for the company through FY28.
- •The brokerage flagged competition, execution challenges, and AI-related risks as concerns for the company.
Shares of PhysicsWallah (PW) surged more than 4% after brokerage Motilal Oswal initiated coverage of the stock with a 'Buy' rating and a target price of Rs 200, implying upside of roughly 66% from prevailing levels.
In initiating coverage, Motilal Oswal highlighted several strengths of the company, including its capital-efficient business model, strong online presence, and a scalable offline network of centres. The brokerage also projected revenue and EBITDA growth for the company through FY28.
Motilal Oswal's report pointed to a differentiated customer acquisition cost (CAC) moat, the company's dominance in the online education segment, and the scalability of its offline operations as key pillars of its investment thesis. A low customer acquisition cost has been a distinguishing feature of the test-preparation segment, where companies spend heavily on marketing to reach students; PW's brand built around popular educators has historically helped it acquire users at lower cost than peers that relied more on paid advertising.
Alongside the positives, the brokerage flagged certain risks, including competition, execution challenges, and risks related to artificial intelligence. Competition in Indian test-prep edtech remains intense, with players such as Unacademy, Allen Career Institute (now backed by Bodhi Tree Systems), and Aakash Educational Services, which is owned by Byju's parent Think and Learn, vying for the same pool of JEE and NEET aspirants. The AI risk flagged by the brokerage reflects a broader industry debate over whether large language model–based tutoring tools could compress pricing or disrupt traditional coaching delivery.
PhysicsWallah is one of India's prominent edtech platforms, founded by educator Alakh Pandey, and offers online and offline coaching for students preparing for competitive examinations. The company, which counts WestBridge Capital and GSV Ventures among its early investors, went public on the Indian stock exchanges in 2025, and brokerages initiating coverage after listing often move newly listed stocks as institutional investors build positions.
The original report is available at Economic Times Markets.
