Meesho Share Target Price: Citi gave a target of Rs 210, 23% rise in the share is expected …

Business Desk – Meesho Share Target Price: Global brokerage Citigroup has given ‘buy’ rating while starting coverage on the shares of Meesho, a leading company in the e-commerce sector. The brokerage believes that the company’s rapidly growing user base, strong presence in smaller cities and low-cost business model will drive its growth in the coming years.

Slight weakness in shares, market cap more than Rs 79 thousand crores

Meesho shares opened at Rs 174.25 on Tuesday. In early trade it was seen trading around Rs 171 with a decline of 0.73%. The market cap of the company is around Rs 79,430 crore.

Citi set target price of Rs 210

Citi has given a target price of Rs 210 on the shares of Meesho. This shows a potential gain of about 23% from the current level. The brokerage believes that the benefits of the company’s business expansion and growing customer base can be seen in the coming years.

Network of 264 million users and 9.5 lakh sellers

According to the brokerage report, Meesho has more than 264 million annual transacting users, showing a growth of 33% year-on-year. There are more than 9.5 lakh active sellers on the company’s platform, whose number has increased by 87% in a year. It is clear from this that the company’s reach is increasing rapidly, especially in Tier-2 and Tier-3 cities.

Zero commission model becomes strength

Citi says that Meesho’s business model is different from other e-commerce companies. The company works on zero commission model and earns through logistics services. Apart from this, the company’s advertising platform is also considered relatively easy for sellers, because it requires less complex bid management.

Estimated 27% CAGR growth by FY29

The brokerage estimates that the company’s net merchandise value (NMV) may grow at a compound annual growth rate (CAGR) of 27% between financial years 2026 to 2029. This growth will mainly come from the growing user base and increasing frequency of purchases. Although the average order value (AOV) is expected to decline by about 4%, its impact may be balanced by the increase in the number of orders.

Profitability may increase by FY30

According to Citi, Meesho’s adjusted EBITDA margin may reach 2.1% of NMV by FY29, which may increase to 3.6% by FY30. The brokerage estimates that by FY29 the company’s NMV will reach Rs 854 billion and adjusted EBITDA could be Rs 18.3 billion. This figure is likely to increase to Rs 992 billion NMV and Rs 35.7 billion EBITDA in FY30.

some risks also exist

The brokerage has also mentioned some risks in the report. In this, the expansion of the company’s Valmo logistics network and the success of advertising technology are prominent. If these plans do not perform as expected, the company’s growth and profits may be affected.

Loss reduced significantly in quarterly results

Meesho’s recent Q4FY26 results have also been strong. The company’s consolidated net loss declined to Rs 166.34 crore, compared to Rs 1,391.38 crore in the same quarter a year ago. This huge reduction in losses is being considered a sign of improvement in the financial performance of the company.