Get App
Download App Scanner
Scan to Download
Advertisement

Urban Company Gets Neutral Call As Motilal Oswal Initiates Coverage On Rich Valuations — Check Target Price

Motilal Oswal initiates coverage on Urban Co. with a Neutral rating implying a potential upside of 14% from the current market price.

Urban Company Gets Neutral Call As Motilal Oswal Initiates Coverage On Rich Valuations — Check Target Price
While Urban Company is well positioned to benefit from the long-term formalisation of home services, Motilal Oswal believes current valuations already reflect much of the growth potential.
(Photo: Company website)
STOCKS IN THIS STORY
Urban Company Ltd
--

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

While Urban Company Ltd. is well positioned to benefit from the long-term formalisation of home services, Motilal Oswal believes current valuations already reflect much of the growth potential, and execution risks around habit formation, penetration, disintermediation, and newer initiatives keep the risk-reward balanced; accordingly, the brokerage initiate with a Neutral rating implying a potential upside of 14% from the current market price.

Key downside risks: 

  1. slower-than-expected growth in online penetration given the relationship-driven and informal nature of home services,
  2. elevated disintermediation as consumers and service professionals transact off-platform post initial discovery,
  3. rising competitive intensity—particularly in instant services leading to higher discounts and customer acquisition costs, and
  4. prolonged losses in InstaHelp due to supply build-out and lower average order values.

Click on the attachment to read the full report:

Motilal Oswal Urban Co Ic Note.pdf

VIEW DOCUMENT

ALSO READ: Iran War De-Escalation: Trump's Signal Buys Time, But Arvind Sanger Says India Isn't At The Bottom Yet

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.

To continue reading this story
You must be an existing Premium User

Newsletters

Update Email
to get newsletters straight to your inbox
⚠️ Add your Email ID to receive Newsletters
Note: You will be signed up automatically after adding email

News for You

Set as Trusted Source
on Google Search
Add NDTV Profit As Google Preferred Source