The brokerage highlighted Meesho's asset-light business model and negative working capital structure, noting that these features have enabled the company to generate consistent positive cash flows, unlike many other internet-led peers.

The broker expects Meesho's net merchandise value to grow at a robust 30% CAGR over FY25 to FY30E. Contribution margins are seen improving to 6.8% of NMV, while adjusted EBITDA margins are projected to rise to 3.2% by FY30E.

According to the brokerage, NMV growth will be driven by a sharp expansion in annual transacting users to 518 million from 199 million, along with an increase in annual ordering frequency to 14.7 from 9.2. Average order values are expected to moderate to Rs 233 from Rs 274 as logistics efficiencies are passed on across the ecosystem.

Meesho made its stock market debut on December 10. The stock has rallied 77.43% over its IPO price of Rs 111 and is up 22.18% from its listing price of Rs 161.20.

The company's initial public offering saw strong investor demand, with the issue subscribed 79.03 times. Bids were received for 2,196.67 crore shares against an offer size of 27.79 crore shares. The IPO was open between December 3 and December 5, with a price band of Rs 105 to Rs 111 per share.

Meesho plans to use the IPO proceeds to strengthen cloud infrastructure, invest in technology and AI talent, scale marketing and brand-building initiatives, pursue inorganic growth opportunities and meet general corporate needs.

The company operates a multi-sided e-commerce platform that connects consumers, sellers, logistics partners and content creators. Order fulfilment is handled either through its in-house logistics arm Valmo or through third-party logistics partners.

Meesho's net merchandise value per annual transacting seller grew at a CAGR of 16.86% between FY23 and FY25. For the quarter ended September 2025, the company reported a consolidated net loss of Rs 700.72 crore, while revenue stood at Rs 5,577.54 crore.

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