Meesho Stock Jumps as Citi Initiates Buy Rating, Citing Value-Commerce Opportunity

Meesho Stock Jumps as Citi Initiates Buy Rating, Citing Value-Commerce Opportunity​

Meesho Ltd shares gained 2.5 percent in Tuesday's morning trade after brokerage firm Citi initiated coverage on the stock with a 'Buy' rating. Citi set a target price of Rs 210 per share, suggesting an approximate upside of 22 percent from the previous closing price. The company's stock traded at around Rs 176.5, continuing its sustained gains since its listing.

The positive coverage comes as Meesho continues to expand its strategic initiatives. Just days prior, the company announced the acquisition of Kirana Club and Retail Pulse Labs for a combined cost of Rs 202.08 crore. This move aims to bolster Meesho's presence within India's rapidly evolving digital commerce landscape.

Citi Backs Value-Commerce Model, Targets Significant Upside​

Citi characterized Meesho as a value-focused e-commerce platform boasting strong strategic differentiation. The brokerage highlighted that the company's marketplace-led model effectively reduces operating costs for sellers while simultaneously offering affordable products to consumers. This structure enables Meesho to operate like an "infinite and accessible store" for its vast consumer base, supported by a technology-driven approach across the e-commerce value chain.

The analyst rating was based on valuing the company at 50 times its FY29 estimated enterprise value-to-adjusted EBITDA multiple. The fundamental strength lies in Meesho's user growth metrics. As of March 2026, the platform reported over 264 million annual transacting users, marking a 33 percent year-on-year increase.

Explosive Growth in Seller Base and Market Penetration​

The company’s seller ecosystem is also showing rapid expansion. The annual transacting seller base grew by an impressive 87 percent from the previous year, surpassing 950,000 sellers. This rapid growth underscores Meesho's expanding market reach.

The acquisition of Kirana Club is set to leverage a significant network of over 4.1 million registered kirana retailers across India. Meesho stated that this transaction aligns perfectly with its strategy of deepening its reach and democratizing internet commerce into underserved markets, specifically targeting tier-3, tier-4, and rural regions.

Strategic Acquisition Strengthens Digital Commerce Reach​

The Kirana Club acquisition is a strategic move to incorporate a community-led B2B commerce platform into Meesho's operations. Kirana Club functions by enabling local retailers to discover, compare, and order FMCG and grocery products directly from brands.

Investor interest in Meesho has remained high recently due to both the series of positive brokerage initiations and its continuous strategic business developments. Investors are closely assessing the company’s capability to successfully scale its value-commerce model while simultaneously expanding its extensive merchant and consumer ecosystem.