Physicswallah shares jump 5% after block deal worth Rs 550 crore. What’s ahead after 63% rally in 6 months?
PhysicsWallah shares surged around 5% after nearly 4.67 crore shares worth about Rs 550 crore changed hands in a block deal at Rs 117.72 apiece. The stock has recovered sharply from its March low, while improving Q1 FY27 financials and a Buy rating from JM Financial point to a more positive outlook.
Physicswallah's shares witnessed a sharp surge of approximately 5% on Wednesday after a substantial block deal of nearly 4.67 crore shares, valued at around Rs 550 crore. The trading price for the shares during the block deal was Rs 117.72, which represented a 3% discount to the stock's previous closing price of Rs 121. Following the block deal, the stock surged further to Rs 126.98 per share.
This block deal occurred in the wake of Physicswallah's remarkable recovery, with the shares having rebounded by 63% in just six months since their record low of Rs 77.72 in March.
The edtech platform's shares made a strong market debut in November last year, listing at a 33% premium over the IPO price of Rs 145 per share on NSE. However, the stock experienced a significant decline, dropping over 52% in less than four months, reaching its lowest point of Rs 77.72 in March. Despite this downturn, Physicswallah shares have shown resilience, recovering 63% since then.
In a recent update, Physicswallah reported improved financial performance for the first quarter of FY27. The company's consolidated net loss narrowed to Rs 88.3 crore, compared to a loss of Rs 127 crore in the same period last year. Revenue from operations increased by 24% year-on-year to Rs 1,054 crore, primarily driven by strong growth in its online business.
JM Financial, an investment firm, described the Q1 performance as "decent," noting a 24% year-on-year growth in consolidated revenue, despite a shift in NEET-related revenue. The firm highlighted the 33.2% year-on-year growth in the online business and improving monetisation and profitability. In response to Physicswallah's strong performance, JM Financial upgraded the stock to 'Buy' and maintained its target price of Rs 140 per share, indicating over 15% upside potential from the stock's previous closing price.
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