PhysicsWallah declines 45 % from highs, trades below IPO level
What's the story
Shares of edtech platform PhysicsWallah have experienced a decline, trading 3% lower today to ₹88.9. The decline comes after a fall in three of the last four sessions. Earlier today, over 70 lakh shares had changed hands in the sell-off that has brought the company's market capitalization down to ₹25,451 crore—well below its listing valuation of nearly ₹45,975 crore.
Market performance
Stock technicals and oversold status
The recent decline in PhysicsWallah's shares has pushed the stock below all major short-term moving averages. These include the 5-day, 10-day, 20-day, and 30-day averages. The stock is also in oversold territory on technical charts with a Relative Strength Index (RSI) of 27.4—an RSI reading below 30 usually indicates that a stock is oversold.
Future prospects
Co-founder's statement on profitability and expansion plans
Despite the current market performance, PhysicsWallah co-founder Prateek Maheshwari had said earlier that the company plans to become profitable within a year. After its listing, the company announced plans to speed up expansion in southern India and strengthen its presence across 11 Indic languages. It also intends to enter new exam categories. Currently, about 52% of revenue comes from online services while offline centers contribute the rest.
Financial performance
Revenue growth and company background
PhysicsWallah's revenue grew by over 40% in FY24-25, with a guidance for over 30% growth in the coming years. The company was founded in 2016 by Alakh Pandey who started with free physics lessons on YouTube. It made a strong market debut with listing gains of 36%, listing at ₹145 on NSE and ₹143.10 on BSE against an issue price of ₹109 per share.
Share distribution
Shareholder lock-in period ends and analyst ratings
On February 12, the three-month shareholder lock-in period for PhysicsWallah ended, allowing 71.7 million shares or 3% of its outstanding equity to be traded. Currently, only two analysts track the stock with one recommending a 'Buy' and the other a 'Sell.' The shares were last trading at ₹89.05—3.05% lower than its previous close and far below the listing price of ₹145 per share.