CLSA Maintains Underperform Rating on Meesho With Rs 150 Target
· Business · Economic Times
CLSA has maintained an Underperform rating on Meesho with a target price of Rs 150, implying a 29% downside from its previous close of Rs 210.30. Meesho shares have gained 18.76% year-to-date in 2026, outperforming the Nifty 500 index which declined 3.90% over the same period. The brokerage argues that the stock's valuation already reflects overly optimistic expectations for advertising revenue, order frequency, and logistics savings. Investors are pricing in advertising revenue equivalent to about 5% of net merchandise value by FY30, compared to CLSA's estimate of 3.9%. CLSA notes that weaker seller-level economics, where Meesho sellers generate one-tenth of the merchandise value of an average PDD seller, could restrict advertising budgets and scale ad revenue.
Why it matters
Investors and market participants tracking the e-commerce sector must weigh stretched valuations against growth projections for advertising and order frequency.
Read the original report — Economic Times
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