The Meesho share price touched a fresh all-time high after being locked in a 20% upper circuit, extending its strong rally for the third consecutive session. The sharp rise came after global brokerage firm UBS initiated coverage on Meesho stock with a ‘Buy’ rating, boosting investor confidence in the newly listed e-commerce company.
Since its stock market debut, Meesho has delivered extraordinary returns, with its share price soaring around 95% above its IPO price. The strong post-listing performance highlights robust investor optimism around Meesho’s business model, growth outlook, and long-term profitability potential.
Meesho Share Price Today: Locked in 20% Upper Circuit
On December 17, Meesho shares surged sharply in intraday trade and were locked at the 20% upper circuit on the BSE at ₹216.35, marking a new record high for the stock. This was the second straight session in which the Meesho share price touched a lifetime high, underlining the strong buying interest in the counter.
With this surge, Meesho stock has now gained 95% compared to its IPO issue price of ₹111, making it one of the most successful recent listings in the Indian equity market.
The stock has now risen for three consecutive trading sessions, delivering:
- 5.6% gain in the first session
- 3.4% rise in the second session
- 20% upper circuit in the latest session
Together, these moves have resulted in a 31% return in just three trading days, a remarkable performance for any newly listed company.
UBS Initiates Coverage on Meesho With Buy Rating
The primary trigger behind the latest rally in the Meesho share price was a bullish research note from UBS, one of the world’s leading investment banks.
UBS initiated coverage on Meesho stock with a ‘Buy’ recommendation and assigned a target price of ₹220, indicating further upside potential from current levels.
According to UBS, Meesho stands out among Indian internet companies due to its:
- Asset-light business model
- Negative working capital structure
- Strong user growth
- Improving profitability metrics
These factors, UBS believes, position Meesho well for sustainable long-term growth.
Why UBS Is Bullish on Meesho Stock
In its detailed note, UBS highlighted several key strengths that support its positive outlook on the Meesho share price.
1. Asset-Light and Cash-Efficient Model
UBS pointed out that Meesho operates an asset-light marketplace model, which allows it to scale rapidly without heavy capital expenditure. Unlike traditional e-commerce players that invest heavily in inventory and warehousing, Meesho focuses on enabling sellers and leveraging logistics partnerships.
Additionally, Meesho’s negative working capital cycle enables better cash flow generation, setting it apart from many loss-making internet businesses.
2. Strong Growth in Net Merchandise Value (NMV)
UBS expects Meesho’s Net Merchandise Value (NMV) to grow at a 30% compound annual growth rate (CAGR) between FY25 and FY30. This growth is expected to be driven by:
- Rapid expansion in the user base
- Higher order frequency per customer
- Increased platform engagement
3. Rising User Base and Engagement
According to UBS estimates, Meesho’s Annual Transacting Users (ATUs) are expected to increase sharply from 199 million to 518 million over the FY25–FY30 period.
At the same time, order frequency is projected to rise from 9.2 orders per user to 14.7 orders, reflecting stronger repeat usage and customer stickiness.
Meesho IPO: A Stellar Market Debut
Meesho made a spectacular debut on Indian stock exchanges last week, setting the stage for its strong rally.
IPO Listing Performance
- IPO price: ₹111 per share
- NSE listing price: ₹162.50 (46.4% premium)
- Intraday high on NSE: ₹172.70 (up 55.58%)
- BSE listing price: ₹161.20 (45.22% premium)
The strong listing reflected massive investor enthusiasm for Meesho’s growth story and its leadership in India’s value-focused e-commerce segment.
Meesho IPO Details and Subscription
The ₹5,421 crore Meesho IPO witnessed overwhelming demand from investors across categories.
Key IPO Highlights
- Total issue size: ₹5,421 crore
- Price band: ₹105–₹111 per share
- Subscription: 79.02 times overall
- Fresh issue: ₹4,250 crore
- Offer for Sale (OFS): 10.55 crore shares worth ₹1,171 crore
The massive oversubscription highlighted strong confidence in Meesho’s business model and long-term growth prospects.
Use of IPO Proceeds
Meesho has outlined clear plans for deploying the funds raised through its IPO. The company intends to invest in:
- Cloud infrastructure to support platform scalability
- Brand building and marketing initiatives
- Inorganic growth opportunities, including acquisitions and strategic partnerships
- General corporate purposes
These investments are expected to strengthen Meesho’s competitive position and accelerate its path toward profitability.
Meesho’s Growth Strategy: Focus on Value Commerce
Meesho has emerged as India’s fastest-growing e-commerce platform based on both annual transacting users and total order volume in the 12 months ending September 30, 2025.
Value-Driven Business Model
Meesho’s platform focuses on offering low-priced products, catering primarily to value-conscious consumers in Tier 2, Tier 3, and rural markets. This strategy has helped the company attract high-frequency shoppers and build a massive user base.
Declining AOV, Rising Volumes
While Meesho’s Average Order Value (AOV) has declined:
- ₹336.71 in FY23
- ₹274.27 in FY25
This reduction reflects the company’s affordability-led approach. Despite lower ticket sizes, Meesho has seen explosive growth in order volumes.
Strong Growth in Orders and Engagement
Between FY23 and FY25:
- Total orders increased from 102.4 crore to 183.4 crore
- ATUs grew at a CAGR of 20.7%, from 13.6 crore to 19.8 crore
User engagement remains robust, with Meesho recording:
- 13.53 billion average daily product views in FY25
- 153.72 million daily active product listings during the six months ended September 30, 2025
Notably, 73.18% of orders were generated through personalised feeds and recommendations, showcasing the strength of Meesho’s AI-driven discovery model.
Profitability Outlook: Margins Set to Improve
UBS expects Meesho’s profitability metrics to improve steadily over the coming years.
Margin Projections (By FY30)
- Contribution margin: 6.8%
- Adjusted EBITDA margin: 3.2% of NMV
While the Average Order Value is expected to decline further to around ₹233, UBS believes that logistics efficiencies and operating leverage will help improve margins over time.
Analyst Views: Is There More Upside in Meesho Share Price?
While UBS remains bullish, other analysts are slightly more cautious.
Utsav Verma, Head of Research at Choice Institutional Equities, stated that:
- Base-case target price: ₹200 (limited near-term upside)
- Bull-case target price: ₹234, assuming stronger-than-expected monetisation and execution
This suggests that while the Meesho share price has already run up sharply, further upside is possible if the company continues to outperform expectations.
Why Investors Are Excited About Meesho Stock
Several factors explain the strong enthusiasm around Meesho stock:
- Market leadership in value e-commerce
- Rapid user growth and rising engagement
- Capital-efficient business model
- Clear path to profitability
- Strong institutional endorsement from UBS
Together, these factors have made Meesho one of the most talked-about stocks in the Indian market following its IPO.
Risks Investors Should Watch
Despite the strong rally, investors should remain mindful of potential risks:
- Intense competition from other e-commerce platforms
- Pressure on margins due to low AOV strategy
- Execution risks in scaling logistics and technology
- Volatility common in newly listed stocks
As always, investment decisions should align with individual risk profiles and financial goals.