Shares of edtech company PhysicsWallah surged as much as 6% to an intraday high of ₹127.80 on the BSE after Motilal Oswal initiated coverage with a Buy rating and a target price of ₹200. The stock was trading 5.3% higher at ₹127 at 11:00 IST, with the company’s market capitalization at ₹36,768.7 crore ($3.8 billion), according to inc42.com.
Motilal Oswal highlighted that PhysicsWallah has built one of India’s largest education communities, with its YouTube channels collectively exceeding 100 million subscribers. The brokerage noted the company’s revenue grew at a compound annual growth rate (CAGR) of around 74% between fiscal years 2023 and 2026. The firm’s YouTube-led model helps acquire students at lower costs and convert them into paying users across online, hybrid, and offline platforms, inc42.com reported.
The brokerage expects PhysicsWallah’s online revenue to grow at a CAGR of 28% from fiscal years 2026 to 2030, driven by an increase in paid users, expansion into new education categories, and AI-led monetization. It also projects the company’s pre-Ind AS EBITDA margin to expand from 26% in FY26 to 30% by FY30. The broader market traded higher amid easing expectations of a US Federal Reserve rate hike, supporting gains in IT stocks, inc42.com stated.
At the time of the report, the BSE Sensex was up 0.74% at 76,713.19, while the NSE Nifty 50 traded 0.36% higher at 23,959.60. PhysicsWallah’s stock performance and the brokerage’s target price reflect growing investor confidence in the company’s growth prospects and market position, inc42.com confirmed.