Newly-listed stocks fall: PhysicsWallah shares tumble 8% on Day 2, Lenskart erases intraday loses

Newly-listed stocks fall: PhysicsWallah shares tumble 6% on Day 2, Lenskart down 4%

PhysicsWallah shares dropped more than 8 percent on November 19, a day after its strong market debut.

Lenskart shares meanwhile erased all intraday losses to close in the deep green on Wednesday.

PhysicsWallah share price:

PhysicsWallah shares listed with a premium of more than 33 percent over the IPO price at Rs 145 apiece on NSE on November 18. At the end of the debut day, the stock surged further to close at Rs 156.49 apiece, marking a rise of nearly 44 percent from its IPO price.

The stock however lost steam on Day 2. PhysicsWallah shares dropped more than 8 percent to close at Rs 142.20 apiece. The stock is still up more than 30 percent from its IPO price of Rs 109 apiece, but is lower than its listing price.

PhysicsWallah share price: Should you buy, sell or hold?

Shivani Nyati, Head of Wealth at Swastika Investmart, had noted that competition from other edtech and offline coaching giants, regulatory uncertainties in the education sector, and the challenge of sustaining profitability during expansion remain key risks for the firm’s growth.

The analyst had advised allotted investors to book partial profits and hold the remaining shares for medium-term growth with a stop loss at Rs 130 apiece.

Siddharth Maurya, Founder & Managing Director at Vibhavangal Anukulakara also advised caution. He noted that at current valuations, the real test is how a business converts millions of free users into paying subscribers while tightening its cost structure. "If PhysicsWallah manages to prove that regional expansion and hybrid models can give steady margins, it earns long-term credibility," he added.

Also read: Groww sees profit booking; stock hits 10% lower circuit

"There is value in the scale it can achieve, but the key headwinds are the presence of players like Unacademy, Byjus, and a hybrid mall, which scales slower than a pure platform play. With a stretched valuation, execution capability to achieve rapid, sustainable growth while retaining top educational talent would be the key if returns are to be made mid to long term," said Shravan Shetty, Managing Director, Primus Partners.

Lenskart share price:

Lenskart Solutions shares had made a weak market debut on November 10, listing at a discount of nearly 3 percent over its IPO price at Rs 390 apiece on BSE. On NSE, the shares were listed with a discount of around 2 percent at Rs 395 apiece.

After its market debut, the stock jumped around 11 percent to hit a high of Rs 438.85 apiece on NSE on November 17. The stock then fell more than 1.5 percent on November 18, and another 4 percent on November 19 to trade at Rs 409.30 apiece.

After trading in the deep red earlier during the day, Lenskart shares erased all losses to close over 1 percent higher at Rs 429 apiece.

Lenskart share price: Should you buy, sell or hold?

Shivani Nyati, Head of Wealth at Swastika Investmart, advised allotted investors to hold the stock for the medium to long term, supported by earnings visibility and expanding store footprint, with a stop loss around Rs 350 apiece. “Short-term traders may exit the position and look for better opportunities elsewhere,” she said.

Ambit Capital had issued a 'Sell' call on Lenskart shares, even before the stock made its much-anticipated market debut. This is a rare occasion when a brokerage issued a ‘Sell’ call on a stock even before it hit the stock markets.

The brokerage kept a target price of Rs 337 apiece for the shares of the popular eyewear-retailer, implying a downside potential of nearly 14 percent from the stock’s listing price of Rs 390 apiece. Notably, the target price is more than 16 percent lower than its IPO price.

According to the brokerage note cited by NDTV Profit, Ambit Capital said that Lenskart’s made-to-order model is capex-heavy, which keeps returns muted. It expects FCF turning positive only in FY28E.

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