Meesho shares gain 6% as Jefferies upbeat on business prospects
Meesho shares climbed 6.19% to Rs 240.40 today against the previous close of Rs 226.45 on BSE. Market cap of the firm rose to Rs 1.10 lakh crore.
- Oct 6, 2026,
- Updated Oct 6, 2026 1:00 PM IST
Shares of Meesho Ltd rose over 6% on Tuesday after global investment bank Jefferies assigned a price target of Rs 240 on the online retailer. This amounts to an upside of 10% from the previous close.
"Products on the platform are typically priced 20% below horizontal peers, supported by a highly fragmented seller ecosystem and a simplified onboarding process. Nearly 70% of its 140 mn listed products are unique, reinforcing differentiation and driving strong engagement among value-conscious consumers," said Jefferies.
Meesho shares climbed 6.19% to Rs 240.40 today against the previous close of Rs 226.45 on BSE. Market cap of the firm rose to Rs 1.10 lakh crore.
Meesho is expected to sustain strong growth over the next five years, with management targeting around 25% annual growth in net merchandise value (NMV). The expansion is expected to be driven by roughly 15% yearly growth in transacting users and a similar increase in order frequency, partly offset by an estimated 5% decline in average order value (AOV), said Jefferies.
Meesho Mall is emerging as an additional growth engine, recording more than 90% year-on-year growth and gaining traction in higher-value categories. Management believes its cost advantage remains relevant across both value and premium products.
Profitability is also expected to improve meaningfully. Contribution margin (CM), currently around 4.6%, is projected to rise to approximately 5.5% over the next 12 months and 8.5% by FY31. The improvement is expected to come from better logistics margins, increased advertising monetisation and operating leverage. However, management remains focused on driving platform growth rather than aggressively monetising sellers, arguing that Meesho’s penetration still has significant room to expand. The company expects to become cash-flow positive within the next few quarters, followed by EBITDA break-even, said the global investment.
Logistics remains a key competitive advantage, with Valmo having built one of India’s largest logistics networks within three years. Management plans to lower logistics costs through greater automation, higher prepaid-order penetration, self-pickup initiatives and increasing scale. The resulting improvement in logistics margins could support both profitability and Meesho’s ability to maintain competitive pricing.
Artificial intelligence is increasingly being integrated into the platform through personalised product discovery, recommendation systems and voice-enabled commerce. Beyond its core marketplace, management sees financial services as a potential long-term monetisation opportunity, including Buy Now, Pay Later offerings for customers. The company could leverage its proprietary data to improve credit underwriting.
Competitive intensity is viewed as manageable. Amazon and Flipkart continue to emphasise speed, convenience and faster delivery, while Meesho remains focused on delivering value to both consumers and sellers. This differentiated positioning, combined with continued user and order growth, improving unit economics and emerging monetisation opportunities, could support Meesho’s long-term expansion and profitability.
Shares of Meesho Ltd rose over 6% on Tuesday after global investment bank Jefferies assigned a price target of Rs 240 on the online retailer. This amounts to an upside of 10% from the previous close.
"Products on the platform are typically priced 20% below horizontal peers, supported by a highly fragmented seller ecosystem and a simplified onboarding process. Nearly 70% of its 140 mn listed products are unique, reinforcing differentiation and driving strong engagement among value-conscious consumers," said Jefferies.
Meesho shares climbed 6.19% to Rs 240.40 today against the previous close of Rs 226.45 on BSE. Market cap of the firm rose to Rs 1.10 lakh crore.
Meesho is expected to sustain strong growth over the next five years, with management targeting around 25% annual growth in net merchandise value (NMV). The expansion is expected to be driven by roughly 15% yearly growth in transacting users and a similar increase in order frequency, partly offset by an estimated 5% decline in average order value (AOV), said Jefferies.
Meesho Mall is emerging as an additional growth engine, recording more than 90% year-on-year growth and gaining traction in higher-value categories. Management believes its cost advantage remains relevant across both value and premium products.
Profitability is also expected to improve meaningfully. Contribution margin (CM), currently around 4.6%, is projected to rise to approximately 5.5% over the next 12 months and 8.5% by FY31. The improvement is expected to come from better logistics margins, increased advertising monetisation and operating leverage. However, management remains focused on driving platform growth rather than aggressively monetising sellers, arguing that Meesho’s penetration still has significant room to expand. The company expects to become cash-flow positive within the next few quarters, followed by EBITDA break-even, said the global investment.
Logistics remains a key competitive advantage, with Valmo having built one of India’s largest logistics networks within three years. Management plans to lower logistics costs through greater automation, higher prepaid-order penetration, self-pickup initiatives and increasing scale. The resulting improvement in logistics margins could support both profitability and Meesho’s ability to maintain competitive pricing.
Artificial intelligence is increasingly being integrated into the platform through personalised product discovery, recommendation systems and voice-enabled commerce. Beyond its core marketplace, management sees financial services as a potential long-term monetisation opportunity, including Buy Now, Pay Later offerings for customers. The company could leverage its proprietary data to improve credit underwriting.
Competitive intensity is viewed as manageable. Amazon and Flipkart continue to emphasise speed, convenience and faster delivery, while Meesho remains focused on delivering value to both consumers and sellers. This differentiated positioning, combined with continued user and order growth, improving unit economics and emerging monetisation opportunities, could support Meesho’s long-term expansion and profitability.