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.
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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