Urban Company shares surge 7% to 11-month high, rally 16% in 2 sessions. Here are 2 reasons why

Kent RO agreed to remove advertisements and social media content that allegedly made false and misleading claims about the company’s Native water purifiers. Urban Company shares jumped to Rs 169.47 apiece, the highest level seen by the stock since early October, 2025. Shares of the company have now gained over 16% in just two sessions, after a sharp 9% rally on Friday. Kent RO to pull down content about Urban Company's water purifiers Urban Company filed a defamation suit before the Delhi High Court against Kent RO Systems over advertisements and social media content that allegedly made false and misleading claims about its Native water purifiers.In an exchange filing released on Sunday, Urban Company said that it filed the suit on August 11, alleging that Kent RO's advertising campaign targeted the two-year filter life and two-year service life features offered on its Native M0, M1, M2, M1 Pro and M2 Pro water purifiers. "Kent RO’s advertisements falsely stated that the 2-year filter life and 2-year service life feature of Native water purifiers, amongst other things, is a “marketing gimmick” and that using Native water purifiers is “unsafe” and “risky” for consumers," it added. Kent RO told the court that it would pull down the advertisements that were the subject of the suit and would not run other advertisements or promotional content making the same or similar claims about water purifiers offering a two-year filter life or two-year no-servicing feature that would disparage Urban Company. Also read | Urban Company sues Kent RO over ‘unsafe’, ‘risky’ water purifier ads; company to pull down 'offending' content Emkay Research initiates Buy call on Urban Company share price Emkay Research initiated coverage on Urban Company shares with a ‘Buy’ call and a target price of Rs 190 apiece, implying nearly 20% upside potential from the stock’s previous closing price of Rs 158.60 apiece on NSE.The brokerage noted that the company is the leader of India's online home services market, whose large total addressable market (TAM) and highly unorganized nature provide the company with a long growth runway. Increasing demand density in micromarkets is driving consumer satisfaction as well as partner wages, thereby reinforcing the flywheel, it added. While analysts remain concerned about Urban Company’s InstaHelp foray, given the upfront cash burn, Emkay Research believes this is the right playbook to improve platform stickiness and drive cross-sell. The company has the opportunity to capture a large TAM and increase frequency of platform use, which should create a sticky business, it added. “Considering the company is incubating InstaHelp and Native, and international business profitability is suboptimal, we expect UC to turn profitable only in FY30,” the brokerage concluded. Urban Company share price After hitting a record high of Rs 201.18 apiece in September last year, Urban Company shares more than halved to hit a record low of Rs 100.70 apiece in March this year. The stock has however sharply recovered more than 68% since then to trade at Rs 169.47 apiece today.Urban Company shares have gained over 16% in one week and around 30% in a month, overall gaining more than 28% in 2026 so far. Its market capitalisation currently stands at around Rs 25,952 crore. Also read | Buy, Sell or Hold? Morgan Stanley maintains buy on Vishal Mega Mart; Emkay Global initiates coverage on Urban Company (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price