Meesho Stock Analyzed by JM Financial

Key Points

• JM Financial downgraded Meesho to ‘Reduce’ due to high valuations.

• Target price set at ₹170 (3% upside), based on discounted cash flow.

• Valuation implies a high multiple of 108x for FY28 earnings.

• Meesho is a key player in Indian e-commerce with 234 million users.

• Profitability depends on advertising and falling logistics costs.

• Company uses an asset-light model, offering advantages in cost leadership.

Meesho: The Details

JM Financial, a well-known investment firm, recently took a close look at Meesho, a company that helps other businesses sell things online. They’ve given Meesho a ‘Reduce’ rating, which basically means they don’t think the stock will go up much more.

The reason is that Meesho’s stock price has gone up a lot since it first started selling shares to the public (called an IPO). The experts at JM Financial think the stock is now too expensive. They predict Meesho’s stock could reach around ₹170 in the future, which would be a 3% increase from its current price.

To figure out this price, they used a special way of calculating value called a “discounted cash flow.” This means they looked at how much money Meesho is likely to make and then figured out what that’s worth today. They believe Meesho is valued at around 108 times its expected earnings in the year 2028.

Before the IPO, Meesho’s stock price jumped up significantly. However, since then, it’s been trading at a similar price. This suggests investors are cautious about future growth.

Meesho is a big deal in India’s online shopping world. It helps many small businesses sell their products. They have a huge group of people who regularly buy things online – about 234 million people! This is almost 90% of all the online shoppers in India.

What’s special about Meesho is that it doesn’t own a lot of things itself, like warehouses. Instead, it connects sellers, buyers, and delivery companies. This helps them keep costs down.

Meesho makes money by charging fees for its services, like helping businesses sell products and providing data to help them understand what customers want. They’re also hoping to make more money through advertising.

Recent Developments

Recently, Meesho’s stock price went down for two days in a row, hitting a limit called the ‘lower circuit.’ This means the price couldn’t go any lower.

There was also some news about a top manager leaving the company. This can sometimes make investors worried.

On Friday, Meesho’s stock actually went up a little, reaching ₹173.14. This happened because a lot of shares that couldn’t be sold after the IPO became available for trading again.

Meesho started trading on the stock market on December 10, 2025, at a price of ₹162 per share. This was a good start, as it was 46% higher than the initial price.

Investing involves risk, and past performance doesn’t guarantee future results.