The brokerage believes Physicswallah combines a near-monopoly position in online test prep, negative working capital, and multiple independent growth legs in K-12, state boards, new categories, and the South. With offline nearing break-even in FY27, it sees Ebitda compounding from ~Rs 6,00 crore in FY27E to ~Rs 20,000 crore in four years. Motilal Oswal values Physicswallah on an SoTP basis. For the online business, it has assigned a multiple of 50 times FY28E EV/Ebitda, reflecting its market leadership, structurally superior unit economics, and scalable technology platform, resulting in a per-share value of Rs 172.
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Motilal Oswal Report
Motilal Oswal has reiterated its Buy call on Physicswallah Ltd. with a target price of Rs 200, implying around 43% upside from the brokerage's cited market price of Rs 140. The brokerage believes the edtech company has multiple independent growth drivers that can support sustained revenue and Ebitda expansion over the next few years.
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Motilal Oswal believes Physicswallah's multiple independent growth legs provide comfort on ~30% online compound annual growth rate for the next three-four years, with a clear path toward sustained Ebitda improvement over the same period.
The brokerage believes Physicswallah combines a near-monopoly position in online test prep, negative working capital, and multiple independent growth legs in K-12, state boards, new categories, and the South.
With offline nearing break-even in FY27, it sees Ebitda compounding from ~Rs 6,00 crore in FY27E to ~Rs 20,000 crore in four years.
Motilal Oswal values Physicswallah on an SoTP basis. For the online business, it has assigned a multiple of 50 times FY28E EV/Ebitda, reflecting its market leadership, structurally superior unit economics, and scalable technology platform, resulting in a per-share value of Rs 172.
The brokerage values the offline business at 15x FY28E EV/Ebitda, reflecting its execution intensity, lower-margin profile, regional competition, and capital requirements, contributing Rs 4 per share.
The brokerage values other businesses at 1x FY28E EV/sales, contributing Rs 1 per share.
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