BofA starts India's PhysicsWallah with 'underperform' on profit, growth concerns
BUZZ-BofA starts India's PhysicsWallah with 'underperform' on profit, growth concerns ** BofA initiates PhysicsWallah PHYS.NS at "underperform" with PT of 110 rupees, implying an 18% downside from current level
** Says valuations are ahead of fundamentals after 55% rally over past six months
** Educational services provider's loss-making in-person classes, unproven unit economics make growth and profitability harder to balance, brokerage says
** Expects 29% online revenue CAGR over FY26-FY29, on newer, lower-priced courses that may require additional spending
** Balancing growth and margins may become tougher as pace of in-person class additions slows with slowing test-prep demand and regulatory risks being key downside factors - BofA
** 9 analysts on avg rate PHYS at "buy", median PT at 144 rupees -LSEG-compiled data
** PHYS down 0.44% on day at 134.17 rupees; YTD up 1.35%
(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))
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