Synopsis: JPMorgan gave an Outperform rating on Meesho Limited, expecting higher revenue per user, strong cash flow, and growth potential from advertising and improving business performance.
This Large-cap Stock, engaged in social commerce, enabling small businesses and individuals to sell products online through reselling, logistics support, digital payments, and marketplace services across India, jumped 12.85 percent after JPMorgan gave an Outperform target of Rs. 215, which has an upside potential of 24.42 percent.
With a market capitalization of Rs. 88,863.78 crores, the share of Meesho Limited has reached an intraday high of Rs. 195 per equity share, rising nearly 12.85 percent from its previous day’s close price of Rs. 172.80. Since then, the stock has retreated and is currently trading at Rs. 189.90 per equity share.
Reason Behind the Surge
JPMorgan, a prominent brokerage firm, has recommended a “Outperform” call on Meesho Limited with a target price of Rs. 215 per share, indicating an upside potential of 24.42 percent from its previous day’s close price of Rs. 172.80 per share.
JPMorgan’s “Overweight” rating on Meesho is based on its expectation that the company’s sales value (NMV) will grow faster than its user base. This means Meesho is likely to earn more from each customer over time. Another key factor is advertising, which is still not fully utilized, giving the company room to increase revenue without relying only on new users.
At the same time, cost savings from logistics improvements may not repeat in the long run. However, Meesho is expected to generate strong free cash flow again, showing better financial health. This combination of higher revenue potential and improving cash flow supports a positive outlook on the stock.
Business Highlights
Meesho Limited has sustained strong growth, reaching 846,000 annual transacting sellers and 251 million users as of December 2025. Engagement also improved significantly, with LTM Annual Transacting Users at an all-time high of 251 million and transaction frequency rising to 9.78 times per consumer annually, indicating deeper platform adoption and repeat usage.
The seller base grew 81 percent year-on-year, driven by faster onboarding and enhanced product discovery initiatives. Its logistics arm, Valmo, ensures efficient nationwide fulfilment through integrated delivery partners. With 2,082 employees, Meesho continues to prioritize cost efficiency, innovation, and positive cash flow while expanding its digital ecosystem.
Company Overview
Meesho Limited was incorporated in 2015 and is a multi-sided technology platform enabling e-commerce in India by connecting consumers, sellers, logistics partners, and content creators. Operating under the Meesho brand, it offers a wide range of affordable products while providing sellers with a low-cost, scalable platform to grow their businesses.
The company runs through two key segments. Its Marketplace segment facilitates transactions and generates revenue through services like order fulfilment, advertising, and seller analytics. Meanwhile, its New Initiatives focus on expanding a low-cost logistics network for daily essentials and building a digital financial services ecosystem to support users and sellers.
Recent Quarter Results
Coming into financial highlights, Meesho Limited’s revenue has increased from Rs. 2,679 crore in Q3 FY25 to Rs. 3,518 crore in Q3 FY26, which has grown by 31.32 percent. The company’s net loss increased from Rs. 37 crore in Q3 FY25 to Rs. 491 crore in Q3 FY26.
Meesho Limited’s revenue has grown at a CAGR of 27.96 percent over the last two years. In terms of return ratios, the company’s ROCE and ROE stand at -8.71 percent and -264 percent, respectively. Meesho Limited has an earnings per share (EPS) of Rs. -453, and its debt-to-equity ratio is 0.04x.
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