Synopsis: Meesho’s stock hit 5% lower circuit, following the end of the lock-in period. BofA initiated coverage with a ‘Neutral’ rating and Rs. 190 target, citing strong NMV growth, improving EBITDA, and strategic expansion plans.
The company is an app-based marketplace connecting sellers directly with end consumers, offering a wide range of products across fashion, accessories, electronics, home, kitchen, and more is now in the spotlight following BofA’s initiation of coverage and recent lock-in period ending.
With a market capitalisation of Rs. 73,947 cr, the shares of Meesho Ltd are currently trading at Rs. 163.85 per share, hitting a lower circuit of 5% in today’s market session, making a low of Rs. 162.10, down from its previous close of Rs. 170.60 per share.
Shares of Meesho experienced a 5% decline on January 12, reflecting continued volatility in the market after recent fluctuations. This comes after a period of gains and corrections, highlighting investor caution as the stock adjusts following its strong post-listing performance.
The company’s one-month shareholder lock-in period has recently ended, making approximately 109.9 million shares, around 2% of the company’s total equity, available for trading in the market. The recent expiry of the lock-in period does not imply that all shares will be sold at the same time. It only means that these shares can now be traded in the market.
BofA Securities has officially initiated coverage on Meesho, assigning it a ‘Neutral’ rating with a target price of Rs. 190, indicating a potential upside of around 16% from current levels. The brokerage emphasised that Meesho is strategically well-positioned to tap into the value-focused mass market, which remains a significant growth segment in India’s e-commerce landscape.
Meesho’s net merchandise value (NMV) is expected to grow at a compound annual growth rate (CAGR) of 26% between FY26 and FY29, reflecting strong underlying business momentum.
In addition, the company’s adjusted EBITDA is projected to improve from a negative 3% in FY26 to a positive 3% by FY29, signalling a clear trajectory toward profitability. These projections indicate that Meesho is not only expanding its top line but also steadily improving operational efficiency.
Several strategic factors could further support Meesho’s growth. These include gaining additional market share in India’s competitive e-commerce space, scaling up its fintech offerings to provide better customer and seller services, and expanding into the grocery segment, which represents a rapidly growing category. Collectively, these initiatives are expected to enhance the company’s reach, diversify revenue streams, and strengthen long-term value creation for investors.
About the company
Meesho Ltd is an Indian e-commerce platform that helps small businesses and individuals sell products online. It connects sellers with buyers through social channels like WhatsApp and Instagram, enabling resellers to earn without holding inventory. Known for its low-cost, tech-driven model, Meesho has grown rapidly to become one of India’s leading online marketplaces.
As of September 30, 2025, the company reported a total income of Rs. 5,857.7 crore. Losses narrowed to Rs. 700.7 crore, reflecting improved cost management in recent months, while EBITDA losses stood at Rs. 551.9 crore, indicating continued near-term operating pressure. Meanwhile, total assets declined to Rs. 6,640.4 crore from Rs. 7,226.1 crore in March 2025.
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