Urban Company Stock Falls 8% | Deven Choksey Warns Against High Valuations

Urban Company shares slide around 8% as widening losses raise questions about profitability despite strong revenue growth. The company reported a net loss of ₹182 crore against ₹59 crore a year earlier, while revenue jumped 41% to around ₹537 crore. Deven Choksey, MD, DR Choksey FinServ Private, says the key concern is not the business model, but whether current valuations can deliver adequate returns for investors. He highlights questions around platform user growth, the ability to recover costs and the path to profitability. His broader warning extends to food delivery, quick commerce and other new-age technology companies. Can strong growth justify expensive valuations? Choksey believes investors should wait for valuations to rationalise before considering these businesses. Watch the full interaction for his market perspective.