Synopsis:
Urban Company is in focus as Morgan Stanley and Goldman Sachs see major downside in the company, citing high customer churn, limitations in supply, and a need to continue spending on the new “Insta Maid” service.,
The shares of this technology-driven, full-stack online marketplace offering home, beauty services and more are in focus after leading global brokerages initiated coverage on the firm and gave mixed views regarding. In this article, we will dive more into the details.
With a market capitalization of Rs 21,905 crore, the shares of Urban Company Ltd made a day low of Rs 152.20 per share, down by 3.6 percent from its previous day’s closing price of Rs 157.85 per share. Post its listing in September 2025, the stock has corrected by over 17 percent.
Analyst Comments
Leading Global Brokerage Morgan Stanley has assigned an “underweight” rating on the stock and set a target price of Rs 117 per share, signaling a downside potential of 26 percent from its previous day’s closing price of Rs 157.85 per share.
Morgan Stanley cited that Urban Company has a huge potential market, strong competitive advantages, and a well-experienced team; therefore, its core India home services business can reportedly grow at a steady rate of 18-22 percent annually over 2025-28.
On the other hand, it is indicated that the company can face issues related to high customer churn, limitations in supply, and a need to continue spending on the new “Insta Maid” service, which, in turn, can slow the profitability rate.
On the other hand, Goldman Sachs has assigned a “neutral” rating on the stock and set a target price of Rs 140 per share, signaling a downside potential of 11 percent from its previous day’s closing price of Rs 157.85 per share.
Goldman Sachs believes that Urban Company has a good business model, and increasing business is already accounted for in the market. They continue to anticipate that the top line will increase by 24 percent every year till 2030 (35 percent if we exclude Insta Help).
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Financial and Other Highlights
Urban Company is an Indian home services platform that connects customers with trained professionals for a range of services, including beauty and wellness, home cleaning, appliance repair, and maintenance. Founded in 2014 and headquartered in Gurugram, it operates across major cities in India and several international markets.
Urban Company delivered a revenue growth of 38 percent to Rs 1,144 crore in FY25 as compared to Rs 828 crore in FY24. Coming to its profitability, the company delivered a strong profit of Rs 240 crore as compared to a loss of Rs 93 crore in FY24.
Written by Satyajeet Mukherjee
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