As many as 3.86 crore Meesho shares changed hands in a block deal at Rs 233 apiece, amounting to a total transaction value of Rs 899.71 crore, according to ET Now. This transaction led to a 4% drop in Meesho's share price, which hit an intraday low of Rs 230.94 on the NSE, following a previous day surge of nearly 10%.
UBS has maintained its 'Buy' rating on Meesho shares, raising its target price by 24% to Rs 260. The brokerage firm cited higher medium-term growth estimates and a stronger margin trajectory as reasons for its bullish stance. UBS has increased its FY29-31 Net Merchandise Value (NMV) estimates by 7-18%, along with a similar rise in contribution profit estimates and a 20-40% increase in EBITDA estimates.
The increase in NMV forecasts is attributed to the continued growth in sellers, which rose by 81% year-on-year to 1.04 million in Q1FY27, and buyers, which increased by 29% year-on-year to 274 million. UBS also noted the rapid expansion in SKUs and logistics partners as contributing factors.
“Meesho's focus on value commerce in a low-income yet digitally savvy market like India opens a sizeable growth opportunity.”
UBS
Ventura Securities recently initiated coverage on Meesho with a 'Buy' call and a target price of Rs 278. It highlighted the structural growth phase of India's e-commerce market, driven by internet penetration and digital payments, particularly in Tier II, Tier III, and rural areas. However, CLSA maintained its 'Underperform' rating with a target price of Rs 150, citing overly optimistic expectations for advertising revenue and logistics savings.
Meesho's focus on value commerce in a low-income yet digitally savvy market like India presents a significant growth opportunity, according to UBS.
Background
Meesho, a leading value-commerce marketplace in India, has been expanding its reach across Tier II, Tier III, and rural areas, leveraging the country's growing internet penetration and digital payment adoption. The company's zero-commission, asset-light platform has attracted a significant user base, making it a key player in the evolving e-commerce landscape.
Looking ahead, investors will be closely watching Meesho's ability to sustain its growth trajectory amid varying analyst opinions. The company's performance in expanding its user base and improving margins will be key factors to monitor.
