Goldman Sachs has initiated coverage on Urban Company with a neutral rating and a target price of ₹140 per share, citing strong execution, defensible business fundamentals, and steady long-term growth prospects.
The brokerage said it expects Urban Company to deliver 24% revenue CAGR over FY25–30 and a 35% EBITDA CAGR for its India services business (excluding InstaHelp). Goldman Sachs described Urban Company’s business model as defensible, supported by its brand strength, repeat customer base, and operational scalability.
However, the brokerage believes much of this optimism is already captured in the company’s premium valuation. Urban Company currently trades at about 9x FY28E enterprise value to sales and 64x FY28E enterprise value to EBITDA (excluding InstaHelp) — at a premium to Indian internet peers, though broadly in line on a growth-adjusted basis.
Goldman Sachs added that while the company’s long-term growth potential remains robust, valuation headroom is limited in the near term, warranting a neutral stance.
Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
