Meesho shares slip 7% as Nomura assigns 'reduce' call; here's what the brokerage says
Meesho shares: The brokerage expects competition from horizontal platforms and overlap with quick commerce to rise which could affect margins.
- Sep 25, 2026,
- Updated Sep 25, 2026 4:57 PM IST
Shares of Meesho Ltd slipped 7% on Friday after brokerage Nomura initiated 'reduce' call on the online retailer. The brokerage said Meesho stock trades at a significant premium to other platforms. It said that 23% NMV CAGR was likely over FY27-30 driven by adoption. The brokerage expects competition from horizontal platforms and overlap with quick commerce to rise which could affect margins. Amazon and Flipkart are likely to increase their presence in value commerce and quick commerce, while overlap between the two segments could rise.
Meesho stock ended 6.87% lower to Rs 216.85 on BSE. Market cap of the firm slipped to Rs 96,451 crore.
On October 22, global brokerage UBS raised its price target by 24% on the Meesho stock.
The brokerage raised its medium-term growth estimates, citing stronger expectations for both revenue expansion and margin improvement. While its FY27 estimates remain broadly unchanged, it has increased its FY29-FY31 net merchandise value (NMV) forecasts by 7-18%.
UBS made a similar upward revision to its contribution profit estimates, while its EBITDA projections for FY29-FY31 have been raised by 20-40%.
Q1 earnings
In Q1 of the current fiscal, the firm reported a 54 percent year-on-year (YoY) fall in its quarterly net loss to Rs 132.8 crore against Rs 289.4 crore in the same period a year ago. The company posted a loss of Rs 166.3 crore in the previous quarter.
The Bengaluru-based firm logged a revenue from operations of Rs 3,712.8 crore, up 48 percent YoY from Rs 2,503.9 crore in the year-ago period. It had reported a revenue of Rs 3,531.2 crore in the previous quarter.
Total expenses increased 43 percent to Rs 3,959.2 crore in the quarter ended June, up from Rs 2,777.6 crore a year ago and Rs 3,807.1 crore a quarter ago.
Shares of Meesho Ltd slipped 7% on Friday after brokerage Nomura initiated 'reduce' call on the online retailer. The brokerage said Meesho stock trades at a significant premium to other platforms. It said that 23% NMV CAGR was likely over FY27-30 driven by adoption. The brokerage expects competition from horizontal platforms and overlap with quick commerce to rise which could affect margins. Amazon and Flipkart are likely to increase their presence in value commerce and quick commerce, while overlap between the two segments could rise.
Meesho stock ended 6.87% lower to Rs 216.85 on BSE. Market cap of the firm slipped to Rs 96,451 crore.
On October 22, global brokerage UBS raised its price target by 24% on the Meesho stock.
The brokerage raised its medium-term growth estimates, citing stronger expectations for both revenue expansion and margin improvement. While its FY27 estimates remain broadly unchanged, it has increased its FY29-FY31 net merchandise value (NMV) forecasts by 7-18%.
UBS made a similar upward revision to its contribution profit estimates, while its EBITDA projections for FY29-FY31 have been raised by 20-40%.
Q1 earnings
In Q1 of the current fiscal, the firm reported a 54 percent year-on-year (YoY) fall in its quarterly net loss to Rs 132.8 crore against Rs 289.4 crore in the same period a year ago. The company posted a loss of Rs 166.3 crore in the previous quarter.
The Bengaluru-based firm logged a revenue from operations of Rs 3,712.8 crore, up 48 percent YoY from Rs 2,503.9 crore in the year-ago period. It had reported a revenue of Rs 3,531.2 crore in the previous quarter.
Total expenses increased 43 percent to Rs 3,959.2 crore in the quarter ended June, up from Rs 2,777.6 crore a year ago and Rs 3,807.1 crore a quarter ago.