Meesho Share Performance
The recently listed e-commerce platform Meesho exhibited a remarkable surge in share price on Wednesday, December 17, ascending over 10.5% intraday to achieve a new all-time peak of ₹199.35 on the National Stock Exchange (NSE).
This event marks the second consecutive day of record highs for the stock and signifies three uninterrupted days of growth. Over the past two sessions, Meesho’s shares have risen by 5.6% and 3.4%, culminating in an extraordinary 21% increase within just three trading days.
UBS Rating Boost
The astonishing rally was propelled by a bullish analysis from the global firm UBS, which commenced coverage of Meesho with a ‘Buy’ recommendation and established a target price of ₹220, suggesting nearly 10% upside from the current peak.
IPO Triumph
Meesho’s debut on the stock market was nothing short of spectacular, launching at a premium exceeding 46% from its issue price of ₹111.
On the NSE, the shares commenced trading at ₹162.50, reflecting a 46.40% increase, and subsequently skyrocketed by 55.58% to ₹172.70.
On the BSE, the initial listing was at ₹161.20, marking a 45.22% boost. With today’s high, the total gain from its IPO price stands at a remarkable 79%.
UBS’s Positive Outlook on Meesho
UBS emphasised several factors in its favourable assessment of Meesho, including its asset-light operational model, robust user growth, and consistent improvement in financial metrics.
The brokerage noted that Meesho’s business structure fosters effective cash flow generation, underscored by negative working capital— a distinguishing characteristic compared to numerous other internet enterprises.
Projected Growth Metrics
In its analysis, UBS stated, “We contend that Meesho’s asset-light, negative working-capital framework positions it advantageously for ongoing profitability, underpinned by a projected 30% compound annual growth rate (CAGR) in Net Merchandise Value (NMV), increasing user engagement, and heightened order frequency through FY30.”
Furthermore, UBS anticipates that Meesho’s NMV will expand at a 30% CAGR from FY25 to FY30, facilitated by a substantial rise in Annual Transacting Users (ATUs) from 199 million to 518 million. Order frequency is projected to increase significantly from 9.2 times to 14.7 times in the same timeframe.
Order Value and Profitability Forecast
Simultaneously, the Average Order Value (AOV) is expected to decline from ₹274 to ₹233 as the company distributes logistics efficiencies throughout its ecosystem. The contribution margin is anticipated to reach 6.8%, while the adjusted EBITDA margin is likely to achieve 3.2% of NMV by FY30.
Meesho IPO Overview
The ₹5,421 crore Meesho IPO experienced considerable investor enthusiasm, culminating in an impressive subscription rate of 79.02 times at closing.
The issue carried a price band ranging from ₹105 to ₹111 per share. It included a fresh issue of ₹4,250 crore alongside an offer for sale (OFS) of 10.55 crore shares valued at ₹1,171 crore at the upper price limit.
Future Investments
Meesho intends to allocate the proceeds toward cloud infrastructure, branding and marketing strategies, as well as pursuing inorganic growth avenues through acquisitions and strategic alliances. A portion of the funds will also address general corporate needs.
Leading E-commerce Entity
Emerging as India’s foremost e-commerce platform based on annual transacting users and order volumes, Meesho has established a robust value-centric model, presenting competitively priced commodities that captivate high-frequency shoppers within the twelve months concluding September 30, 2025.
The company’s AOV has diminished from ₹336.71 in FY23 to ₹274.27 in FY25, reflecting its strategy aimed at affordability. Nevertheless, total orders surged from 102.4 crore to 183.4 crore during the same timeframe.
User Engagement and Growth
From FY23 to FY25, Meesho’s ATUs experienced a CAGR of 20.7%, escalating from 13.6 crore to 19.8 crore. User engagement remains robust, with the platform recording an average of 13.53 billion daily product views in FY25.
Robust Product Listings
In the six months concluding September 30, 2025, Meesho hosted 153.72 million daily active product listings, up from 109.65 million previously. Notably, 73.18% of orders were generated through personalised feeds and recommendations, underscoring the potency of Meesho’s discovery-driven model.
Source link: Livemint.com.
