Meesho share price jumps 5% after Jefferies initiates coverage with buy rating; target price at ₹225 a share

Meesho share price rose nearly 5% on Wednesday, 10 June, after global brokerage Jefferies initiated coverage on the stock with a 'Buy' rating and a target price of ₹225, implying an upside potential of about 34% from current levels.

Jefferies said Meesho is building a large-scale value-commerce platform focused on affordability, product discovery, and logistics efficiency, catering primarily to price-sensitive consumers in non-metro markets. The brokerage believes the company's loyal customer base and extensive MSME seller network are creating a strong growth flywheel that can drive sustained expansion.

The brokerage expects Meesho to deliver a net merchandise value (NMV) CAGR of around 25% between FY26 and FY30, supported by rising order volumes, improved logistics efficiency, and a growing seller ecosystem. It also forecasts adjusted EBITDA margins of around 3% by FY30, with potential for further expansion over the longer term.

According to Jefferies, Meesho's commission-free model has helped attract a large number of sellers while maintaining competitive pricing for customers. The company's asset-light logistics network, which combines its in-house logistics platform with third-party partners, is expected to support cost-efficient growth.

The brokerage highlighted technology as a key differentiator, noting that artificial intelligence-driven tools are enhancing customer engagement, improving product discovery, and boosting logistics efficiency.

Jefferies also identifies significant opportunities for monetisation through advertising, seller services, content commerce, and premium offerings, all while upholding Meesho's value-centric approach. The brokerage projects that the company will achieve free cash flow positivity by FY28, bolstered by its asset-light business model, negative working capital cycle, and a net cash-rich balance sheet.

Nonetheless, Jefferies warned of risks, including a heavy reliance on cash-on-delivery, potential logistics disruptions, regulatory changes, and broader macroeconomic factors.

Meesho share price today

Meesho share price today opened at ₹172.35 per share on the BSE. The stock touched an intraday high of ₹174.65 per share and a low of ₹165.05 per share.

Meesho shares have declined 4.85% over the past week, extending losses to 11.15% over two weeks and 16.72% over the last month, reflecting profit-booking and broader market weakness. However, the medium-term trend remains positive, with the stock still delivering an 18.70% gain over the past three months, adding ₹26.25 during the period.

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