22 hrs ago
Meesho Shares Rise 6% as Jefferies Sees Growth
Meesho’s shares went up by about 6% today.
Jefferies believes the company can keep growing over the next five years.
Meesho aims to increase the value of goods sold on its platform by about 25% each year.
More shoppers and more frequent orders are expected to help, even though the average order may be smaller.
Meesho Mall, which sells higher-value products, has also been growing quickly.
The company expects its profit margins to improve as delivery becomes more efficient and advertising brings in more money.
It says it may become cash-flow positive in the next few quarters, and later reach EBITDA break-even.
Meesho is also using AI to help people find products and sees financial services as a possible future opportunity.
Meesho shares gained 6.19% to Rs 240.40, compared with the previous close of Rs 226.45 on BSE.
Jefferies expects Meesho to target roughly 25% annual growth in net merchandise value over the next five years.
Meesho Mall grew more than 90% year over year, according to the article.
Contribution margin is projected to rise from about 4.6% to 5.5% over 12 months and 8.5% by FY31.
Management expects cash-flow positivity within the next few quarters, followed by EBITDA break-even.
- Who
- Meesho and Jefferies.
- What
- Meesho shares rose 6.19% as Jefferies outlined growth and profitability prospects.
- Where
- Shares traded on BSE.
- When
- The shares gained today; the article does not specify a calendar date.
- Why
- Jefferies cited expected growth in users and orders, Meesho Mall, improving logistics margins, advertising monetisation and operating leverage.
Key facts
- Share price
- Rs 240.40, up 6.19% from the previous close
- Previous close
- Rs 226.45
- Market capitalization
- Rs 1.10 lakh crore
- Target NMV growth
- Around 25% annually over the next five years
- Meesho Mall growth
- More than 90% year over year
- Contribution margin outlook
- About 4.6% currently; projected at 5.5% in 12 months and 8.5% by FY31
- Profitability timeline
- Cash-flow positivity expected within the next few quarters, followed by EBITDA break-even
Sources
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