JM Financial has initiated coverage on Meesho Ltd. with a ‘Reduce’ rating, citing limited upside after the sharp run-up in the stock following its initial public offering (IPO).
The brokerage has set a March 2027 target price of ₹170, implying around 3 per cent upside from Thursday’s close. The valuation is based on a discounted cash flow methodology and translates into EV to adjusted Ebitda multiples of about 108x for financial year 2028 (FY28), in line with Meesho’s long-term growth potential, JM Financial said.
Since its listing on December 10 last year, the stock has risen over 55 per cent, but has fallen back to trade near the listing price.
According to the brokerage, Meesho is expected to remain a key player in Indian e-commerce and the first digital commerce platform for a large section of the population. However, stretched valuations at current market prices limit near-term upside, and JM Financial cautioned new investors about potential supply pressure after the expiry of the six-month post-IPO lock-in period.
JM Financial expects Meesho’s profitability to be driven by higher advertising income and improved mark-ups as logistics costs for sellers decline. While the business remains differentiated with significant headroom for growth, the brokerage believes the risk-reward is unfavourable at current levels.
Meesho currently accounts for about 7-8 per cent of India’s e-commerce gross merchandise value but has a large user base of around 234 million annual transacting users, representing nearly 90 per cent of the country’s online shoppers. User growth is expected to be led by Tier 2 and smaller towns and value-focused consumers, positioning Meesho as a key driver of digital commerce penetration in underserved categories.
Unlike peers that invest heavily in inventory and warehousing, Meesho follows an asset-light model, acting as a platform connecting sellers, buyers, logistics partners and content creators, the brokerage said. The company does not charge commissions and monetises its platform through fulfilment services, advertising and data insights.
JM Financial expects Meesho to further strengthen its cost leadership, creating durable competitive advantages under its low-cost, high-volume operating model.
Meesho share price history
Shares of Meesho hit a 5 per cent lower circuit for two straight sessions on January 07 and January 8. Earlier this week, the companys aid its general manager for business resigned, the first senior management exit since the e-commerce firm’s public listing. Shares of Meesho rose as much as 5 per cent on Friday to 173.14 apiece on the NSE.
Meanwhile, on Wednesday (Jan 7), the stocks one-month shareholder lock-in period expired. Around 110 million shares, or 2 per cent of the company’s outstanding equity, became eligible for trading once the lock-in expires.
Softbank-backed e-commerce player Meesho made a debut on Dalal Street on December 10, 2025. The company’s shares were listed at ₹162 per share, a premium of ₹51 or 46 per cent on the NSE. Post-listing, the stock touched a high of ₹172.8, up 6.5 per cent from the listing price.
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