Goldman Sachs initiates coverage on PhysicsWallah, sets target price of Rs 135 backed by strong revenue, EBIDTA projection

Listen to this article in summarized format Goldman Sachs has initiated coverage on PhysicsWallah with a Neutral rating and a ₹135 target price. Goldman Sachs has initiated coverage on edtech platform PhysicsWallah with a ‘Neutral’ rating and a target price of Rs 135, citing strong execution capabilities in a large addressable market. The brokerage highlighted the company's solid track record in the Indian education technology space, where it is considered one of the largest platforms, and noted its long-term growth potential. According to Goldman, PhysicsWallah is expected to register a 24% revenue CAGR over FY25-30 and an over 80% EBITDA CAGR in the same period. The firm attributed the growth outlook to robust top-of-the-funnel organic traffic, a relatively benign competitive environment in the Indian edtech space, and a pricing structure that supports deeper penetration into new educational categories. However, Goldman flagged uncertainties in the company’s offline expansion , calling it “still nascent.” It added that the path to steady-state margins in the offline segment remains less certain due to the commoditized and competitive nature of the physical education market compared to online. PhysicsWallah is currently trading at 100x FY27E P/E and 52x FY28E P/E, placing it at the mid-to-high end of India's internet peer group valuation spectrum, Goldman noted in its report. Separately, on Tuesday, the company announced a strategic acquisition move aimed at supporting its future growth plans. Its parent entity, Penpencil Edu Services, entered into an agreement to acquire a 1.76-acre parcel of land for a consideration of Rs 69.49 crore. The sellers in the transaction are Sudhir Kumar Tiwary and Vedaant Tiwary. The land purchase is intended to support future business expansion, although the company did not disclose specific plans for development at this stage. Also read: Santa rally in sight? Nifty seen heading to 26,700 by January, Bank Nifty to 61,000: Dharmesh Shah ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news , stock tips , Budget 2025 , Share Market on Budget 2025 and expert advice , on ETMarkets . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today . Top Trending Stocks: SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price (You can now subscribe to our ETMarkets WhatsApp channel ) (What's moving Sensex and Nifty Track latest market news , stock tips , Budget 2025 , Share Market on Budget 2025 and expert advice , on ETMarkets . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex...

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