Urban Company’s Shares Fall Over 3% Intraday

SUMMARY

Shares of Urban Company fell as much as 3.57% to INR 152.2 apiece on the BSE during intraday trading today

Morgan Stanley initiated coverage with an 'Underweight rating' and a price target of INR 117, indicating about 26% downside from previous close

Goldman Sachs began coverage with a 'Neutral' rating and a PT of INR 140, implying a near 11% potential downside

Update | October 23, 11:44 PM

Shares of Urban Company closed the trading session 3.71% lower at INR 152 today after brokerages initiated coverages on the company with bearish outlooks.

The company’s market capitalisation stood at INR 21,825.71 Cr at the end of the session.

Original | October 23, 1:57 PM

Shares of Urban Company fell as much as 3.57% to INR 152.2 apiece on the BSE during intraday trading today, after multiple brokerages initiated coverage of the stock.

The stock was trading down 3.26% INR 152.70 per share as of 13:50 IST.

The company’s market capitalisation stood at INR 21,926.22 Cr ($2.49 Bn) during intraday trading.

The bearish investor interest towards the company’s shares today comes shortly after brokerages shared mixed takes on the stock’s near term performance.

Morgan Stanley initiated coverage with an ‘Underweight rating’ and a price target of INR 117, indicating about 26% downside from previous close. The brokerage cited rich valuations and said most growth optimism is already priced in.

It expects 18–22% CAGR in net transaction value (NTV) for FY25–28, with India consumer services EBITDA margins improving to 30% in the medium term, but remains cautious due to high churn and supply constraints.

Meanwhile, Goldman Sachs began coverage with a ‘Neutral’ rating and a PT of INR 140, implying a near 11% potential downside. Like Morgan Stanley, Goldman Sachs also shared concerns over the company’s premium valuations in comparison with peers. While it acknowledged strong execution and defensible business fundamentals, it believes the current price reflects the upside.

Important to note that the company’s shares have been trading in the red over the recent trading sessions, declining about 15% over the past month. With the recent decline, the company’s shares are trading over 5% below its listing price of INR 162 on the BSE.

Urban Company, founded in 2014, made a bumper debut on the bourses on September 17, listing at 56% above their issue price of INR 103 on the BSE.

On the financial front, the Gurugram-based company reported a net profit of INR 239.7 Cr in FY25 as against a loss of INR 92.7 Cr in FY24. Its operating revenue jumped 38.2% to INR 1,144.4 Cr from INR 828 Cr in FY24.

Its profit slipped 45% to INR 6.9 Cr in Q1 FY26 from INR 12.6 Cr in the year-ago quarter. Operating revenue grew 24% to INR 367.3 Cr from INR 280.1 Cr in Q1 FY25. The company is set to report its second quarter (Q2 FY26) results on November 1.