Shares of ecommerce major Meesho surged as much as 9.3% during intraday trading after UBS maintained its ‘Buy’ rating and raised its target price to ₹260 from ₹210. The stock hit an intraday high of ₹239.45 on the BSE and was trading 8.9% higher at ₹238.55 at 11:25 IST. Meesho’s market capitalization stood at ₹1.10 lakh crore (around $11.5 billion), with the revised target implying a further upside of about 9%, according to inc42.com.
UBS raised its net merchandise value (NMV) estimates for Meesho for FY29-FY31 by 7%-18%, alongside similar increases in contribution profit projections. The brokerage also increased its EBITDA estimates for the period by 20%-40%. UBS attributed the higher NMV projections to the continued expansion of Meesho’s buyer and seller ecosystems, rapid growth in SKUs, and logistics partners. Meesho’s annual transacting sellers jumped 81% year-on-year to 10.4 lakh in Q1 FY27, while annual transacting users rose 29% to 27.4 crore, inc42.com reported.
Meesho’s NMV increased 34% year-on-year to ₹11,614 crore during the quarter. UBS expects Meesho’s earnings to grow faster than NMV over the medium term as the company improves advertising monetisation and logistics economics. The ecommerce platform’s contribution margin expanded to 4.6% of NMV from 4% in the preceding quarter. Its adjusted EBITDA loss narrowed to ₹178.2 crore from ₹230.1 crore in the year-ago period, while consolidated net loss was reduced by 54% year-on-year to ₹132.8 crore, according to inc42.com.
Meesho’s stock performance and UBS’s revised projections reflect growing investor confidence in the company’s business model and growth trajectory. The company’s next quarterly earnings report will provide further clarity on whether these positive trends in NMV and profitability continue, inc42.com noted.