Physicswallah’s market debut delivered strong early gains — but the momentum has quickly reversed. In less than a week, the edtech stock has slipped into a sharp correction, wiping off nearly ₹10,000 crore in investor wealth and raising questions about how investors should navigate the newly-listed counter.
The stock, which listed at a 31 percent premium to its ₹109 issue price at ₹143.10, surged further to an all-time high of ₹162.05. However, by November 24, it had declined 21.5 percent from that peak, marking its fourth straight session of losses. On Monday alone, Physicswallah shares dropped almost 6 percent to a low of ₹127.
Despite the steep slide, the counter continues to trade above its IPO price, leaving initial subscribers with a 16.5 percent gain. But the sharp reversal underscores the volatility often seen in freshly-listed companies, especially in sectors where earnings visibility is still evolving.
According to Harshal Dasani of INVAsset PMS, the company is expanding aggressively — scaling offline centres, widening hybrid learning formats and strengthening its platform. While these moves support long-term growth, the business is still in the early stage of profitability, with quarterly earnings showing fluctuations. Such conditions tend to magnify price swings after listing.
Dasani also points to the IPO subscription level — at just around 1.8 times — as an early indicator that the issue was priced tightly. Once the listing-day euphoria cooled, the stock had little valuation buffer, making it more vulnerable to profit-taking and macro-driven volatility.
With the stock now well below its highs, investor strategy hinges on risk appetite and time horizon:
• IPO investors: Still sit on double-digit gains. Those with a medium to long-term view may prefer to assess upcoming quarterly results and offline expansion metrics before making fresh decisions.
• New investors: Should recognise that Physicswallah remains a growth-stage edtech play with evolving profitability — meaning higher-than-average volatility can persist.
• Traders: May find opportunities, but momentum remains weak in the short term, with four days of consecutive declines signalling caution.
As the company continues its expansion and works toward stabilising earnings, further clarity in future quarters will likely determine whether the recent slide is an overreaction or a reset to more realistic valuations.