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Kotak Downgrades Urban Company Shares, Projects 10% Fall Amid High Valuations
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CNBC TV18•07-10-2026, 09:06
Kotak Downgrades Urban Company Shares, Projects 10% Fall Amid High Valuations
- •Kotak Institutional Equities has downgraded Urban Company to sell from add while revising its price target to ₹155, signaling a potential 10% downside from previous closing levels.
- •The brokerage raised its Net Transaction Value CAGR estimate to 23% for fiscal 2026-2029 due to stronger-than-expected core business growth over the past few quarters.
- •Kotak pointed out that competitive intensity in the sector remains high with no signs of consolidation, and the current stock valuation is considered rich at 36 times fiscal 2031 estimated adjusted EBITDA.
Key Questions Answered
Kotak downgraded Urban Company to a sell rating because the stock is trading at 36 times its financial year 2031 estimated adjusted EBITDA, which the brokerage considers rich and too expensive given the elevated competitive intensity without market consolidation.
Kotak revised its price target on Urban Company to ₹155 from ₹150, which indicates a downside potential of 10% from Tuesday's closing price levels.
Among nine analysts covering Urban Company, four have a sell rating, three recommend a buy, and two have a hold, with consensus estimates implying a downside potential of 14.1% from current levels.
