Archive · 27 Jul 2026
Motilal Oswal Sees 30% Upside in Meesho
Motilal Oswal Financial Services has started covering Meesho, a big e-commerce company in India.
They think Meesho's stock could go up by more than 30%.
Meesho is really big, with lots of users and orders, especially in smaller cities.
It doesn't need lots of money for buildings or inventory, which helps it make money.
The company is expected to start making a profit by 2028.
Motilal Oswal likes Meesho because it has a lot of room to grow in India, where online shopping is still small compared to other countries.
They also think Meesho can make more money by selling ads and other services.
Motilal Oswal initiated coverage on Meesho with a 'Buy' rating and a target price of Rs 240, implying over 30% upside.
Meesho is India's largest e-commerce platform by user base and order volume, with 274 million ATUs and 280 crore orders in the last twelve months.
Meesho operates an asset-light business model with negative working capital, enabling significant Free Cash Flow generation.
The company is expected to achieve adjusted EBITDA and net profit break-even by FY28, with strong growth projections.
Meesho's share price has remained unchanged over the past five trading days but has surged 14% in the past six months.
- Who
- Motilal Oswal Financial Services
- What
- Initiated coverage with a 'Buy' rating on Meesho
- When
- Recent
- Where
- India
- Why
- Due to Meesho's unique combination of scale, asset-light model, and long runway for growth
Optimistic View
Cautious View
Growth Potential
Optimistic View
Meesho has significant growth potential due to its asset-light model and large market opportunity in India.
Cautious View
The company is currently loss-making and faces competition in the e-commerce sector.
Profitability
Optimistic View
Meesho is expected to achieve profitability by FY28, with strong projections for EBITDA and net profit.
Cautious View
Achieving profitability may be challenging given the competitive landscape and operational costs.
Market Penetration
Optimistic View
Meesho has a vast scale and leadership in value e-commerce, with a large user base and order volume.
Cautious View
The company needs to penetrate deeper into the market to sustain growth.
- Current Market Price
- Rs 180
- Target Price
- Rs 240
- Annual Transacting Users (ATUs)
- 274 million
- Orders in Last Twelve Months
- 280 crore
- User Base Origin
- 88% from Tier 2+ markets
- Online Retail Penetration in India
- 7% of total retail sales
- Projected EBITDA Break-even
- FY28
- Projected Net Profit Break-even
- FY28