Meesho shares jump 7% as Citi initiates coverage with 'buy' call 

Shares of Meesho rose over 7% in the afternoon session today after global brokerage Citi initiated coverage on the company with a 'buy' recommendaton. It assigned a target price of Rs 210 to the e-commerce player, implying an upside of 22% to the stock's closing price of Rs 172.35 on Monday. 

Meesho shares climbed 7% to Rs 184.75 against the previous close of Rs 172.35 on BSE. Market cap of the firm stood at Rs 83,965 crore. 

According to the brokerage, Meesho is well positioned to capitalise on the next wave of growth in India's e-commerce sector, especially as online shopping adoption accelerates among price-sensitive consumers in smaller cities and towns. 

Meesho's marketplace-only business model differentiates it from many rivals. 

By avoiding an inventory-led approach, the company keeps operating costs lower for sellers while offering customers a broad selection of affordable products. 

The brokerage noted that Meesho enjoys several competitive strengths, including a vast network of sellers, a logistics monetisation strategy that does not rely on charging commissions, and increasing use of technology to improve efficiency across its platform.

Citi considers Meesho as an "infinite and accessible store" capable of serving a massive consumer base through its technology-driven ecosystem that spans the entire e-commerce value chain. The brokerage has valued the company at 50 times its estimated enterprise value-to-adjusted EBITDA for FY29.

Citi expects Meesho's gross merchandise value (GMV) to expand at a compound annual growth rate of about 27% between FY26 and FY29. Sustained growth in active shoppers, coupled with rising spending per customer, will drive this expansion. It added that Meesho's affordability-focused strategy, scalable marketplace framework and strong technology capabilities could help the company capture a larger share of India's fast-growing e-commerce market in the years ahead.