Urban Company — a multi-category home-services marketplace with operations in India, the UAE, Singapore, and Saudi Arabia — is back in the spotlight after Kotak Institutional Equities initiated coverage on the company.
In its latest report released on Thursday, November 27, the brokerage assigned a ‘Sell’ rating on Urban Company and set a target price of ₹120, which indicates a further 13% downside from Wednesday’s closing level.
Kotak noted that the company’s domestic consumer services business is likely to expand at a 17% CAGR between FY25 and FY28, while its international operations are expected to grow at a much faster pace of 33% annually over the same period. The brokerage also forecasts a 38% annual rise in adjusted EBITDA for the India consumer services vertical, though it highlighted that the Insta Help segment will continue to require incremental investment.
Urban Company had earlier seen coverage initiations from Morgan Stanley and Goldman Sachs on October 23. Both firms had flagged limited upside for the stock — Morgan Stanley began coverage with an ‘Underweight’ rating and a ₹117 target price, while Goldman Sachs assigned a ‘Neutral’ rating with a ₹140 target.
Since its market debut, the stock had seen a sharp rally, nearly doubling within days of listing and hitting a post-listing high of ₹201 on September 22, compared to its issue price of ₹103. However, by Wednesday’s close, the stock had corrected 31% from that high.
Despite the recent weakness, Urban Company’s shares ended 2.07% higher at ₹138.27 on Wednesday, still about 34% above the IPO price.
