Urban Co. Ltd. IPO
👉Urban Company is a technology-driven, full-stack online marketplace offering home and beauty services.
👉The company's platform enables consumers to book services such as cleaning, plumbing, electrical work, appliance repair, beauty treatments, and massage therapy, delivered by trained, background-verified professionals.
👉The company has also ventured into home solutions with the launch of water purifiers and electronic door locks under its brand ‘Native’. It supports service professionals with training, tools, financing, insurance, and branding, helping improve service quality and earning potential.
👉The companies assets have grown from 1630.22 crore to 2200.64 and income has grown from 726.24 crore to 1260.68 crore in the last 3 years. The company has turned profitable from a loss of 312.45 crore to profit of 239.77 crore in the last 3 years.
👉KPI
RoNW - 13.35%
Price to Book Value -8.27
EPS- 1.67
P/E- 61.68
👉 Company is the only organized player in the segment of technology driven online services market place.Based on its recent financial data, the IPO appears aggressively priced.
👉Given that the company doesn't have a listed peer and has posted strong growth in topline the company is demanding a premium on the issue with P/E multiple of 60 .
👉 Overall even though the IPO seems to be richly priced their is a good grey market premium of 30-35%. Further new age companies are know for gaining attraction for higher valuations also.
👉Safe investors should wait for QIB data. Risky can park funds for good listing gains.
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