JM Financial Assigns 'Buy' Rating to Physicswallah, Sees 23% Upside Potential

Physicswallah Share Price Gains 1.23% on BSE Despite Weak Market Trend

On Friday, Physicswallah (BSE: ₹90.35) saw a significant gain of 1.23% in early trade, bucking the trend of a weak Indian stock market. This uptick in the share price came after JM Finance, a domestic brokerage firm, initiated coverage on the recently-listed stock with a bullish view.

JM Finance has assigned a 'Buy' rating to Physicswallah shares with a target price of ₹110 per share, implying a FY28E Price-to-Earnings Ratio (PER) of 70x. This target price implies an upside potential of 23% from Thursday's closing price and is near the Physicswallah shares issue price of ₹109 per share.

JM Finance believes that Physicswallah warrants a premium valuation due to its early stages of monetization and its massive success in the IIT and NEET verticals, which can act as a springboard for its next phase of growth. The brokerage firm also sees significant tailwinds for margin expansion in the company's core online offerings.

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JM Finance values the online business at 30x adjusted EBITDA, while the offline business is valued at 10x adjusted EBITDA multiple, a significant discount to its online business. Key risks include market saturation, operational challenges, geographic concentration risk, and regulatory challenges.

Physicswallah share price has been continuously falling since its listing on 18 November 2025, with a significant premium to the IPO price. The stock is currently trading nearly 40% below its listing price and 20% below its issue price.

Technical Outlook

The Physicswallah share price corrected sharply by 45% within 70 days of listing, reflecting persistent distribution and weak post-IPO sponsorship. The technical outlook remains bearish, with lower highs intact and moving averages sloping downward. Any rebound is likely to be technical in nature, and the stock remains a sell-on-rallies candidate until it reclaims key resistance levels with strong follow-through participation.

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