Meesho Surges Post Block Deal as Jefferies Initiates Coverage with 33% Upside Target

Meesho Surges Post Block Deal as Jefferies Initiates Coverage with 33% Upside Target​

Shares of Meesho Ltd saw a notable rally in morning trade on Wednesday, climbing by 2 percent. This movement followed a significant block deal transaction where 9.3 crore shares, representing approximately 2 percent of the equity, were traded for around Rs 1,540 crore. The stock was trading at roughly Rs 170 during these initial deals.

The rise comes after Meesho's listing in December 2025 and aligns with increased liquidity following the expiry of its six-month shareholder lock-in period. Data from Nuvama Alternative & Quantitative Research indicated that nearly 68 percent of Meesho’s outstanding equity became available for trading on June 10, although this does not guarantee immediate divestment by investors.

Stock Performance and Block Deal Details​

The block deal activity provided a positive backdrop to the stock's movements. The shares were traded in morning deals at around Rs 170 per share. This price represents a substantial gain for the company, being up approximately 53 percent from its IPO issue price of Rs 111.

Analyst Viewpoints and Target Prices​

Jefferies recently initiated coverage on Meesho stock, assigning a Buy rating with a target price set at Rs 225 per share. This valuation implies a potential upside of about 33 percent from the current trading levels. The initiation by Jefferies comes shortly after Macquarie began its own coverage, having assigned an Underperform rating and setting a target price of Rs 125, citing existing valuation concerns.

Jefferies Forecasts for Scale-Led Commerce Platform​

Jefferies emphasized that Meesho operates as a scale-led value commerce platform, which is robustly supported by its MSME network. The brokerage anticipates that this underlying network will continue to be the primary driver of user growth for the company.

The financial projections are optimistic. Jefferies forecasts that monetisation will improve steadily as the company achieves greater scale. Furthermore, they project a Net Merchandise Value (NMV) CAGR of around 25 percent through FY30, alongside an EBITDA margin approaching 3 percent by FY30.

Company Fundamentals and Market Focus​

Jefferies also highlighted Meesho’s strong net cash balance sheet, which the firm believes is instrumental in supporting efficient growth trajectory. This positive valuation focus follows a period where Meesho has remained under significant market scrutiny since its debut last December.

In May, the company had reported improved financial metrics, including a sharp reduction in quarterly losses alongside demonstrated revenue acceleration. These results had previously prompted constructive reactions from several brokerage houses that covered the stock.