Meesho Stock Performance Analyzed

Meesho, the popular Indian e-commerce company, saw its stock price jump dramatically on Wednesday. Shares rose by over 19%, hitting a new high of ₹214.4 per share. This strong performance is largely due to positive comments from a major investment bank, UBS.

Key Points

• Meesho stock surged, climbing 19% driven by UBS’s positive outlook.
• UBS gave the stock a “Buy” rating and a target price of ₹220.
• Meesho expects strong growth in sales (30% annually) by 2030.
• Company users are increasing, aiming for 14.7 orders per year.
• Meesho connects customers, sellers, and delivery partners effectively.
• The company’s IPO was incredibly successful, attracting strong investment.

UBS, a well-known investment bank, gave Meesho a “Buy” recommendation. They predict Meesho will continue to grow quickly. Their key belief is that Meesho will see its sales increase by 30% each year for the next decade.

UBS believes Meesho’s profits will also improve. They expect the company’s profits to grow steadily, reaching 6.8% of sales by 2030. This growth is driven by a big rise in the number of people using Meesho to make purchases.

Meesho works by connecting different parts of the e-commerce business: shoppers, sellers, delivery companies, and people who create content. They have grown rapidly, serving 234 million customers who place around 2.27 billion orders each year.

When Meesho first offered its shares to the public through an IPO, it was hugely popular. Investors snapped up almost all the shares available, with qualified institutional buyers buying 120% of their allotted shares. The IPO raised ₹4,250 crore and ₹1,171.2 crore.

“Meesho’s success demonstrates the potential of India’s e-commerce market and the power of innovative technology platforms.”