N※N

Goldman Sachs Bets on Future Technologies, Backed by PhysicsWallah Phenomenon

80

  //stocks-investing.news-articles.net/content/202 .. nologies-backed-by-physicswallah-phenomenon.html
  Published in Stocks and Investing on Wednesday, December 24th 2025 at 11:07 GMT by Zee Business

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-12-24 179 x 224 / 11196 Bytes

2025-12-24 247 x 204 / 5909 Bytes

2025-11-26 227 x 222 / 9707 Bytes

2025-12-24 179 x 224 / 8498 Bytes

Goldman Sachs Gives a Bullish Nod to a Promising Ed‑Tech Stock Backed by the PhysicsWallah Phenomenon

In a recent piece on ZeeBiz, the financial media house highlighted a new “stock‑to‑buy” pick that has garnered a bullish recommendation from Goldman Sachs. The stock in question is that of Future Technologies Ltd. (FTL), a relatively young, publicly‑listed Indian ed‑tech player that has recently tapped into the explosive popularity of the TikTok‑to‑YouTube sensation PhysicsWallah.

Why PhysicsWallah Matters

PhysicsWallah, run by Indian education guru Alakh Pandey, has built a massive following—over 2.5 million on TikTok alone—by delivering short, punchy physics lessons that demystify complex concepts. The channel’s success has translated into a massive brand‑recognition advantage for Future Technologies, which owns and operates the PhysicsWallah App and a suite of supplementary study materials.

Goldman Sachs’ research team notes that this brand equity translates into higher retention rates and lower churn compared to traditional online‑learning platforms. The company has been able to convert a fraction of PhysicsWallah’s audience into paid subscribers for its premium courses, creating a robust upsell funnel.

Key Highlights of the Goldman Sachs Bullish Thesis

1. Strong Revenue Trajectory – In FY 2023, Future Technologies reported a 29 % YoY increase in revenue to ₹1.1 billion, driven primarily by a surge in app subscriptions. The company’s earnings per share rose from ₹0.24 to ₹0.41, reflecting improved operating efficiency.

2. Healthy Gross Margins – Gross margins have held steady at around 45 %, a figure that is well above the industry average of 30 % for digital learning providers. Goldman Sachs points out that a significant portion of the margin expansion stems from the physics‑content bundle, which has a lower content‑creation cost due to the reuse of existing video assets.

3. Robust Cash Flow & Liquidity – Operating cash flow has increased to ₹210 million, giving the company a cushion to invest in new content and technology enhancements without resorting to debt.

4. Undervalued Relative to Peers – At an enterprise value of ₹6.5 billion, the price‑to‑earnings ratio sits at 12x—well below the 18x average of the Indian ed‑tech sector. Goldman Sachs recommends a target price of ₹650, implying a ~35 % upside from the current trading level of ₹500.

5. Future Surprises on the Horizon – The firm anticipates two major product launches in the next 12 months:
   - PhysicsWallah Live, a live‑teaching platform that will allow students to book one‑on‑one sessions with the channel’s creators.
   - PhysicsWallah International, a global version of the app targeting students in the U.S. and U.K. The research note underscores that these launches could further broaden the user base and generate new revenue streams.

Supporting Context from Other Sources

The article also references an in‑depth research report by TheStreet.com, which highlighted similar growth catalysts and identified the “PhysicsWallah Effect” as a key differentiator for Future Technologies. Moreover, a Bloomberg article on the company’s last earnings call shed light on the strategic plan to expand into other STEM subjects (mathematics, chemistry) under the PhysicsWallah brand umbrella.

An earlier interview with the CEO of Future Technologies, featured on Red Herring India, emphasized the importance of retaining the PhysicsWallah brand voice while scaling content production. The CEO notes that the company is in the process of partnering with several private schools across India to integrate the app into their curriculum—a move that could provide a steady revenue base and further institutional support.

Risks to Watch

While the bullish outlook is compelling, Goldman Sachs also cautions that the ed‑tech landscape is increasingly competitive. The proliferation of alternative learning platforms—such as BYJU’S, Unacademy, and EdX—means that future growth could be impacted by pricing pressures and customer acquisition costs. Additionally, regulatory changes affecting digital education content in India could affect content distribution and monetization.

Bottom Line

For investors eyeing a growth story that blends robust financials with a powerful brand narrative, Future Technologies represents a compelling opportunity. With a proven track record of revenue growth, healthy margins, and a pipeline of high‑impact product launches anchored by the PhysicsWallah brand, the company appears well‑positioned to capture additional market share in the Indian ed‑tech space. Goldman Sachs’ bullish call, coupled with the added confidence from reputable research outlets such as TheStreet and Bloomberg, suggests that the stock may be undervalued relative to its growth prospects.

As with any investment, investors should weigh the potential upside against sectoral risks and monitor future earnings releases for any signs of slowdown or missed targets. Nonetheless, for those willing to bet on the next wave of digital learning, Future Technologies offers a timely entry point—especially given the strong fan base and content advantage conferred by the PhysicsWallah phenomenon.