Meesho shares gain post Rs 1,885-crore block deal, check details

Shares of online retailer Meesho were trading on a flat note after a block deal worth Rs 1885.2 crore took place on NSE today.  In the open market transaction, 7.64 crore shares or 1.65% equity stake worth Rs 1,885.2 crore changed hand today. The transaction price of the block deal was Rs 247 per share.

Meesho shares traded 1.27% higher at Rs 257.40 apiece on BSE in early deals today. Market cap of the firm stood at Rs 1.18 lakh crore.

Meesho has 463 crore shares outstanding, of which 226 crore are part of the free float. The stock has climbed 10 per cent over the past month.

The scrip has climbed 10 per cent in the past one month.

Meesho provides exposure to the structural expansion of value e-commerce across smaller cities and underserved markets. Increasing transaction volumes, improving monetisation and better fulfilment efficiency could strengthen its long-term earnings potential, - Ventura Securities said on Thursday.

Post Q2 results, MOFSL said Meesho’s asset-light model with negative working capital and improving unit economics makes for a unique combination of a scaled platform business with a long runway for growth and potential margin inflection.

It is factoring in a 25 per cent net merchandise value (NMV) CAGR over FY26-31, driven by annual transacting user (ATU) additions and rising platform adoption. Higher ad monetisation and normalising logistics spread should help drive contribution margin to 7.8 per cent by FY31 against 6 per cent in Q2), it said adding that operating leverage should enable break-even in FY28, with adjusted Ebitda margin rising to 4 per cent.

"We reiterate BUY with a revised TP of INR265, premised on 30x FY31E adj. marketplace EBITDA, discounted to December 28," it said.