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What is the story about?
Shares of Urban Company Ltd. declined on Monday, March 30, even as its InstaHelp platform crossed 1 million monthly delivered bookings in March.
The platform had crossed the rate of more than 50,000 daily orders in February.
InstaHelp is currently operational across Mumbai, Bengaluru, Delhi NCR, Pune and Hyderabad. Under this vertical, the firm offers consumers housekeeping services for tasks such as laundry, dishwashing, cleaning and meal preparation, within 10-15 minutes from the time of booking.
On another note, last week, brokerage firm Motilal Oswal initiated a 'neutral' rating on the stock. It said the InstaHelp platform is at an early stage of its business and remains an optionality. Hence, the brokerage valued it at 1.5 times its FY28 EV/NTV with its per-share value at ₹10.
Motilal Oswal said continued investments in onboarding, training and supply expansion are likely to sustain cash burn. This makes the adoption trajectory and unit economics key monitorables, it said.
Earlier this month, SBI Mutual Fund increased its stake in Urban Company by purchasing shares worth ₹632.2 crore, or nearly 4% or its outstanding equity, in a block deal.
At the end of the December quarter, SBI MF held 1.89% stake in the firm.
Shares of Urban Comapny were up 2.9% at ₹117.85 apiece at 9.50 am on Monday. The stock has gained 14.4% in the past month, but is down nearly 50% from its post-listing high of ₹201. The stock is just above its IPO price of ₹103.
Also Read: Shareholder Lock-In: 18.5 crore shares of eight stocks worth over ₹10,000 crore frees up today
The platform had crossed the rate of more than 50,000 daily orders in February.
InstaHelp is currently operational across Mumbai, Bengaluru, Delhi NCR, Pune and Hyderabad. Under this vertical, the firm offers consumers housekeeping services for tasks such as laundry, dishwashing, cleaning and meal preparation, within 10-15 minutes from the time of booking.
On another note, last week, brokerage firm Motilal Oswal initiated a 'neutral' rating on the stock. It said the InstaHelp platform is at an early stage of its business and remains an optionality. Hence, the brokerage valued it at 1.5 times its FY28 EV/NTV with its per-share value at ₹10.
Motilal Oswal said continued investments in onboarding, training and supply expansion are likely to sustain cash burn. This makes the adoption trajectory and unit economics key monitorables, it said.
Earlier this month, SBI Mutual Fund increased its stake in Urban Company by purchasing shares worth ₹632.2 crore, or nearly 4% or its outstanding equity, in a block deal.
At the end of the December quarter, SBI MF held 1.89% stake in the firm.
Shares of Urban Comapny were up 2.9% at ₹117.85 apiece at 9.50 am on Monday. The stock has gained 14.4% in the past month, but is down nearly 50% from its post-listing high of ₹201. The stock is just above its IPO price of ₹103.
Also Read: Shareholder Lock-In: 18.5 crore shares of eight stocks worth over ₹10,000 crore frees up today
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