Synopsis: Jefferies initiated coverage on Meesho with a Buy rating and 34.77% upside potential, driven by strong value-commerce growth, expanding user base, efficient operations, and profitability improvement.
This Mid-Cap Stock, engaged in operating an online marketplace that enables individuals and small businesses to buy, sell, and distribute a wide range of products across India through digital platforms, jumped 4.61 percent after Jefferies gave a Buy target of Rs. 225, which has an upside potential of 34.77 percent.
With a market capitalization of Rs. 76,814.63 crores, the share of Meesho Limited has reached an intraday high of Rs. 174.65 per equity share, rising nearly 4.61 percent from its previous day’s close price of Rs. 166.95. Since then, the stock has retreated and is currently trading at Rs. 167.05 per equity share.
What is the News?
Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Meesho Limited with a target price of Rs. 225 per share, indicating an upside potential of 34.77 percent from its previous day’s closing price of Rs. 166.95 per share.
Jefferies has initiated coverage on Meesho with a positive view, citing its strong position in India’s value-commerce segment. Meesho’s growth outlook is supported by its strong position in value-focused e-commerce, offering affordable products to a large and loyal customer base.
The company has built a deep network of MSME suppliers, creating a strong ecosystem that drives customer engagement, product availability, and repeat purchases. Its focus on affordability, product discovery, and efficient logistics helps strengthen its competitive advantage.
The company is prioritizing growth over near-term monetization, with expectations that take rates will gradually improve as the platform scales. Jefferies forecasts a 25 percent NMV (Net Merchandise Value) CAGR through FY30, supported by rising user activity and expanding market reach. Additionally, Meesho’s net cash position and negative working capital model enable capital-efficient growth, while adjusted EBITDA margins are expected to improve to around 3 percent by FY30.
Business Highlights:
Meesho Limited has strengthened its position as one of India’s largest e-commerce platforms, serving 264 million annual transacting users and processing 717 million orders in Q4 FY26.
The company has introduced PRISM, its proprietary AI-powered system that helps customers discover products based on their interests and shopping behaviour rather than relying only on search. Today, more than 75 percent of orders on the platform come through these personalized recommendations.
Company Overview:
Meesho Limited was incorporated in 2015 and operates a multi-sided technology platform that enables e-commerce in India by connecting consumers, sellers, logistics partners, and content creators. Through its Meesho brand, the company offers a wide range of affordable products while empowering sellers with a cost-efficient and scalable platform to expand their businesses and reach a broader customer base.
The company operates across two primary segments. The Marketplace segment facilitates transactions between buyers and sellers and generates revenue through services such as order fulfilment, advertising, and seller analytics. The New Initiatives segment focuses on strengthening Meesho’s low-cost logistics network for daily essentials and developing a digital financial services ecosystem designed to support both consumers and sellers.
Recent Quarter Results:
Coming into financial highlights, Meesho Limited’s revenue has increased from Rs. 2,400 crore in Q4 FY25 to Rs. 3,531 crore in Q4 FY26, which has grown by 47.13 percent. The company’s net loss has reduced from Rs. 1,391 crore in Q4 FY25 to Rs. 166 crore in Q4 FY26.
Meesho Limited’s revenue has grown at a CAGR of 30 percent over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at -35.6 percent and -42.3 percent, respectively. Meesho Limited has an earnings per share (EPS) of Rs. -2.97, and its debt-to-equity ratio is 0.01x.
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