Bearish Brokerage Calls Hit Urban Company Shares Drop Over 3%

Swaraj

Published on October 28, 2025

Following cautious attitudes by worldwide brokerages on Urban Company, shares of the newly listed services platform fell more than three per cent. Shares of the firm opened around ₹153 on October 23, reflecting investor worry sparked by the research memos.

International broker Morgan Stanley debuted coverage on Urban Company shares roar an ‘Underweight’ rating and targeted price of ₹117, therefore indicating a possible negative of almost 26 per cent from the latest levels. Morgan Stanley said in its note that though India’s home-services industry offers a significant long-term opportunity, much of the growth seemed to have already been priced in.

Goldman Sachs after Industry Ventures’ acquisition, gave the stock a ‘Neutral’ rating with a price target of ₹140 per share, implying more than an 11% fall from the previous closing price. Goldman’s analysts lauded Urban Company’s strong business model and performance, yet cautioned that premium valuation multiples offer little room for future growth. The brokerage comments come as Urban Company has caught investor interest after its September IPO, with the share price up greatly over its initial public offering (IPO) price.

Although the listing euphoria is still present, the most recent studies have brought prudence back into the market mood. Morgan Stanley’s primary worry is high churn in the home-services industry and supply constraints, which it thinks could limit growth even given the large addressable market. Goldman Sachs, on the other hand, forecasts revenue CAGR of roughly 24% and EBITDA growth of approximately 35% for the Indian company over the intermediate term.

Investors should see the signals from these two companies as reminders that even fast-growing firms have valuation challenges. Although Urban Company’s robust brand and market potential are still present, recent limited share prices highlight that near-term profits could be constrained unless operational benchmarks are exceeded. Post-listing course of the stock may now depend more on execution milestones than on market enthusiasm.