Meesho Ltd.'s share price rose as high as 5.74% after analyst expect it to be included in the MSCI index, a standard yardstick used by global investors to track equity performance.
Analysts noted that Meesho's shareholding data showed a significant reduction in private equity stakes (8.6%) compared to the previous quarter. As a result, the retail platform's overall free float market capitalisation.
Free float market capitalisation measures a company's value using only the shares available for public trading on the stock exchange. MSCI index includes companies solely based on this metric.
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Further, analysts said that they expect flow into the stock at the Nov-26 rebalance, and see potential inflows of $240 million, roughly 4 to 5 times of average daily volumes.
Separately, Jefferies has maintained a 'buy' rating on Meesho with a target price of Rs 240, implying only a 1.29% upside from the current market price and a 10% gain from the previous closing price of Rs 210.75. Meesho's current float stands at 30.5%.
The company's management expects 25% Net Merchandise Value (NMV) Compound Annual Growth Rate (CAGR) over next 5-years supported by user growth, higher order frequency & logistics efficiencies.
Positives was Meesho include improving contribution margin, financial services optionality & rising penetration in higher-value categories, Jefferies highlighted, adding that the company is positioned for sustained profitable growth.
"Value-led positioning, Valmo scale & deep reach beyond metros remain the key Meesho moats," Jefferies stated further.
Meesho Q1 FY27 Recap
E-commerce company Meesho Ltd.'s net loss for the first quarter of FY27 halved year-on-year. The company posted a net loss of Rs 132.8 crore, compared to a loss of Rs 289.3 crore in the year-ago period. Revenue climbed 48.3% to Rs 3,713 crore from Rs 2,504 crore.
Loss in earnings before interest, taxes, depreciation, and amortisation narrowed to Rs 224.7 crore from a loss of Rs 264.4 crore in the corresponding quarter of FY26. Further, the e-comm platform has announced an investment of Rs 75 crore in its arm Meesho Groceries.
Meesho's Net Merchandise Value (NMV) grew 34% year-on-year to Rs 11,614 crore during the June quarter, while marketplace revenue rose 48% to Rs 3,707 crore. The company said contribution margin expanded 54 basis points quarter-on-quarter to 4.6% of NMV, while marketplace adjusted Ebitda improved to -1.2% of NMV.
Share Price & History
Meesho's stock rose to a high of Rs 228.51, the shares later pared some gains to trade 4.4% higher at Rs 236.47. The stock has risen 31.22% year-to-date.
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