Kotak Institutional Equities signals a cautious stance toward the recently listed home-services platform
Kotak Institutional Equities has initiated coverage on the stock with a sell rating and a target price of ₹120 per share, signalling a cautious stance toward the recently listed home-services platform.
The stock, which debuted at ₹162.25 on the NSE on listing day on September 17, and briefly surged past ₹200, has retreated sharply in the weeks following the initial public offer (IPO).
The company recently posted a consolidated loss of ₹59.33 crore for the September quarter, compared to a loss of ₹1.82 crore in the year-ago period. It logged a profit of ₹6.94 crore in the April-June quarter.
Kotak’s target price indicates that the brokerage expects limited upside from current levels and sees the possibility of further weakness.
The brokerage expects Urban Company’s India consumer-services business to expand at a steady 17 per cent annually between FY25 and FY28, while projecting a much faster 33 per cent annual growth rate for its international operations over the same period.
Strong gains
The brokerage also anticipates strong profitability gains in the Indian consumer-services segment, forecasting adjusted EBITDA to grow 38 per cent annually, although it cautions that the company’s Insta Help vertical will continue to require meaningful investment before turning profitable.
It also flagged key risks to its bearish call, noting that stronger-than-expected overall growth, competitive pressures, and a faster-than-anticipated improvement in both growth and profitability at the Insta Help vertical could materially alter the outlook.
Before this, two global brokerages, Morgan Stanley and Goldman Sachs, had initiated coverage on the stock. Morgan Stanley assigned an underweight rating at ₹119 target price, while Goldman Sachs had a neutral rating at ₹140.
Morgan Stanley noted that while the company continues to strengthen its position in the home-services market, near-term profitability pressures and ongoing investment requirements remain key concerns.
Shares closed 1.48 per cent lower at ₹136.15 on the BSE on Thursday.
Published on November 27, 2025
