Meesho Surges 9% After UBS Raises Target Price To ₹260
Shares of ecommerce major Meesho surged as much as 9.3% during the intraday trading after brokerage UBS maintained its ‘Buy’…
Ecommerce company Meesho experienced a significant 9.3% increase in its shares during intraday trading as brokerage UBS maintained its 'Buy' rating and raised its target price to ₹260. The stock peaked at ₹239.45 on the BSE, trading 8.9% higher at ₹238.55 by 11:25 IST. UBS believes Meesho’s upside potential is around 9% at the current price.
The brokerage revised its market capitalisation to ₹1.10 Lakh Cr (approximately $11.5 Bn) and projected NMV estimates for FY29-FY31 to increase by 7%-18%. UBS also anticipated a rise in contribution profit projections and EBITDA estimates by 20%-40% for the same period. The brokerage highlighted Meesho's expanding buyer and seller ecosystems, growth in SKUs, and logistics partners as key drivers for its higher NMV projections.
Q1 FY27 saw Meesho's annual transacting sellers increase by 81% YoY to 10.4 Lakh, while its annual transacting users rose 29% to 27.4 Cr. NMV grew 34% YoY to ₹11,614 Cr. UBS anticipates earnings growth for Meesho to outpace NMV as the company enhances advertising monetisation and logistics economics. Meesho's adjusted EBITDA loss narrowed to ₹178.2 Cr, and consolidated net loss contracted by 54% YoY to ₹132.8 Cr, with operating revenue surging 48% to ₹3,707 Cr.
The company listed on the bourses in December last year, currently trading at nearly 115% above its IPO price of ₹111 and about 6% below its 52-week high of ₹254.65.
Written by urgent.news from Inc42's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.