Shares of Indian ecommerce platform Meesho surged more than 9% intraday following UBS’s increase of its target price to ₹260 from ₹210, driven by strong user growth and improved profitability metrics.
- UBS raises Meesho target price to ₹260 with Buy rating
- Net merchandise value and EBITDA estimates increased through FY31
- Meesho’s annual transacting sellers grew 81% YoY in Q1 FY27
What happened
Shares of Meesho, a leading Indian ecommerce firm, surged as much as 9.3% during intraday trading after UBS reiterated its Buy rating and raised the target price by nearly 24% to ₹260. The stock reached an intraday high of ₹239.45 on the BSE, trading significantly above its IPO price of ₹111 and close to its 52-week peak.
UBS increased its FY29-FY31 net merchandise value (NMV) estimates for Meesho by 7% to 18% and raised contribution profit projections accordingly. The brokerage also upgraded EBITDA estimates by 20% to 40%, attributing these revisions to Meesho’s rapid expansion in buyers, sellers, SKUs, and logistics partnerships.
Why it matters
Meesho’s growth signals strong momentum in India’s social commerce segment, with its annual transacting sellers climbing 81% year-over-year to 1.04 million and annual transacting users rising 29% to 274 million in the first quarter of fiscal 2027. This broadening ecosystem underpins UBS’s optimistic outlook.
Financially, the company’s contribution margin improved to 4.6% of NMV from 4% the prior quarter, and adjusted EBITDA losses narrowed substantially. Meesho also reduced its consolidated net loss by 54% year-over-year while recording a 48% jump in operating revenue, highlighting improving profitability and operating leverage.
What to watch next
Investors will be closely monitoring Meesho’s ability to sustain growth in its active buyer and seller base, as well as continued margin expansion driven by enhanced advertising monetization and logistics efficiencies. Further narrowing of losses and progress toward breakeven will be key.
Market participants should also watch for Meesho’s performance relative to the elevated UBS guidance through fiscal 2029-31, as strong execution could validate the increased target price and potentially drive the stock closer to its recent highs and beyond.