India's Urban Company falls; Kotak downgrades to 'sell' on intense competition, high valuations
BUZZ-India's Urban Company falls; Kotak downgrades to 'sell' on intense competition, high valuations ** Shares of Indian home services provider Urban Company URBN.NS fall 2.8% to 168.61 rupees
** Kotak Institutional Equities downgrades stock to "sell" from "add", raises fair value to 155 rupees from 150 rupees
** Brokerage raises loss estimates for FY27 to 6.5 billion rupees ($67.19 million) from 5.8 billion rupees on intense competition in Instahelp
** Says company's spending on expansion and customer acquisition will put pressure on profit margins
** URBN's stock remains expensive despite improving growth prospects, Kotak says
** Raises FY26-29 growth estimate to 23%, citing stronger-than-expected growth in India business and steady growth in international market** Stock rated "hold" on avg by nine analysts, with median PT of 147.50 rupees - data compiled by LSEG
** Stock up 26.03%, YTD
($1 = 96.7350 Indian rupees)
(Reporting by Anushka Rajvedi in Bengaluru)
((mailto: anushka.rajvedi@thomsonreuters.com))
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India's Urban Company falls; Kotak downgrades to 'sell' on intense competition, high valuations