Ambit Capital initiates Meesho with 'buy'; sees scale driving profitability

Meesho

07/09/2026 05:38

** Ambit Capital initiates coverage on Meesho MEES.NS with a "Buy" rating and PT of 265 rupees, calling it a play on value retail's shift online
** Brokerage says Meesho's scale is driving profitability, with ad monetisation and higher shopping frequency emerging as key growth drivers
** Expects revenue to grow at 24% CAGR in FY26-31, helped by user growth, rising order frequency and deeper seller penetration
** Stock trading 0.3% higher at 209.53 rupees
** Says Meesho's asset-light logistics network and zero-commission model give it a cost advantage over Amazon Bazaar and Flipkart's Shopsy
** Sees EBITDA turning positive by FY28 as operating leverage kicks in
** Avg rating of 15 brokerages on Meesho at "Buy"; median PT is 21.50 rupees - data compiled by LSEG
** YTD, stock up 16.2%
     

(Reporting by Kashish Tandon in Bengaluru)
((Kashish.tandon@thomsonreuters.com))