JM Financial initiates Meesho coverage with ‘reduce’ rating, flags limited upside
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Domestic brokerage firm JM Financial has initiated coverage on Meesho with a ‘Reduce’ rating and a target price of Rs 170 for March 2027, citing limited upside potential post the company’s strong post-listing rally. The brokerage has valued the e-commerce platform using a DCF-based approach, implying a 108x/25x FY28/30 EV/Adjusted EBITDA multiple. Meesho made its public market debut on December 10, listing at Rs 161.20 on the BSE. The stock experienced a sharp upward movement following its listing, surging 58% to reach a peak of Rs 254.65. However, as of January 9, the stock has corrected nearly 35.6% from its high and is currently trading at Rs 164, slightly above its listing price. According to JM Financial, while Meesho holds a dominant position in the Indian e-commerce space with approximately 234 million annual transacting users, representing 90% of India’s online shopper base, much of the upside from its growth potential appears to ...