2 hrs ago
Broker Initiates Meesho Buy With ₹265 Target on Scale
A broker believes Meesho can grow strongly in India’s online shopping market.
It says many Indian consumers have not yet developed regular online shopping habits.
Meesho focuses on affordable products and sellers that traditional platforms may not serve efficiently.
Its zero-commission approach lets sellers keep more money and spend some of it on advertising.
As more sellers and shoppers join, Meesho could earn more from ads and services.
The broker expects this to improve Meesho’s profits and cash flow.
It also expects Meesho’s sales volumes to grow faster than those of traditional e-commerce companies.
Based on these expectations, the broker set a ₹265 price target and gave the stock a Buy rating.
The broker initiated coverage of Meesho with a Buy rating and a ₹265 target price versus a ₹211 CMP.
It argues that India’s e-commerce opportunity is constrained by business models, not a shortage of consumers.
Meesho’s low-cost, zero-commission model is expected to attract lower-income shoppers and fragmented, unbranded sellers.
Advertising revenue is projected to reach 5.5% of NMV by FY31, while fulfilment revenue is expected to compound at 22%.
The broker forecasts contribution margin of 7.4% of NMV, EBITDA margin of 9.6%, and RoCE of 36% by FY31.
- Who
- Meesho and the broker initiating coverage.
- What
- The broker assigned Meesho a Buy rating with a ₹265 target price.
- Where
- The analysis concerns India’s e-commerce market.
- When
- The report was published on September 8, 2026.
- Why
- The broker expects Meesho’s low-cost model, volume growth, advertising income, and fulfilment revenue to improve profitability and returns.
Key facts
- Rating
- Buy
- Target price
- ₹265
- Current market price
- ₹211
- India e-commerce share
- About 7% of retail spend, compared with 10%-35% for peers
- Advertising forecast
- 5.5% of NMV by FY31
- Fulfilment revenue growth
- Expected to compound at 22%
- FY31 profitability forecast
- 7.4% contribution margin, 9.6% EBITDA margin, and 36% RoCE
Sources
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