Meesho soars 13% on huge volumes; zooms 74% against issue price in 5 days

Share price of Meesho hit a new high of ₹193.5 on the BSE in Tuesday's intra-day trade, and has zoomed 74 per cent against its issue price of ₹111 per share.

Meesho share price today

Share price of Meesho hit a new high of ₹193.5, as they rallied 13 per cent on the BSE in Tuesday's intra-day trade amid heavy volumes. 

 

With today’s surge, in the five trading days, the stock price of the e-commerce company has zoomed 74 per cent against its issue price of ₹111 per share. Meesho made a stock market debut on December 10, 2025.

 

As of 09:40 AM, Meesho share price was quoting 12 per cent higher at ₹191.75, as compared to a 0.42 per cent decline in the BSE Sensex. A combined 57.27 million equity shares, representing 1.3 per cent of Meesho's total equity, changed hands on the NSE (51.67 million shares) and BSE (5.6 million shares).  READ STOCK MARKET UPDATES TODAY LIVE

What’s driving Meesho's stock price?

Meesho is a multi-sided technology platform driving e-commerce in India by bringing together four key stakeholders -- consumers, sellers, logistics partners and content creators. It has emerged as one of the largest e-commerce players in India with Annual Transacting Users (ATU) of 234 million customers generating about 10x transactions of 2,270 million orders.

 

Meesho operates a zero-commission, value e-commerce model where most efficiency gains are redirected to sellers to keep prices low. Its revenue base, largely logistics fees, advertising, and mall charges, sits on a structurally thin margin profile because logistics optimisation is mostly passed through. This keeps Meesho competitive in the price-sensitive value segment but also makes unit economics harder to expand, according to analysts.

 

Meesho’s zero commission business model, catering to value-conscious customers largely from tier 2 and tier 3 towns, is a key differentiator compared with other listed tech-based consumer service companies in India. Leveraging an efficient business model, the company is able to achieve strong double-digit revenue growth with increasing customers and generate consistent free cash flow (FCF) for the last two years. Further, its valuation at 5x its FY25 revenues is at a discount to close peers, analysts at ICICI Securities said in an IPO note.

 

Because value e-commerce unit economics remain structurally complex, Meesho will likely need more time to optimise Valmo’s supply chain while continuing to pass on most efficiency gains to sellers, keeping profitability a longer-term outcome. That said, Meesho’s differentiated model, supported by its asset-light logistics network and Valmo’s optimisation engine, gives it meaningful headroom to scale, analysts at InCred Equities said.  ALSO READ | Atlantaa hits 5% upper circuit on ₹500-cr redevelopment project in Mumbai 

The brokerage firm had assigned a 'Subscribe' rating to Meesho’s IPO for short-term gains, supported by an attractive valuation at 5.3x market capitalisation/sales. However, over the long run, value e-commerce will continue to face structural challenges. Achieving sustainable Ebitda breakeven remains a distant objective, given the inherent complexity of balancing supply-chain optimisation with passing on benefits to sellers, scaling ad-led monetisation, and preserving Meesho’s sharp price positioning, analysts said.

 

As a high-growth ecommerce player, Meesho continues to capture a large opportunity in India’s expanding digital consumption landscape. The brand’s scale, customer acquisition efficiency, and penetration into tier 2-3 markets provide substantial headroom for growth, according to Prasenjit Paul, equity research analyst at Paul Asset & Fund Manager of 129 Wealth Fund.

 

However, investors should stay alert to the typical pattern seen in new-age tech listings. Sharp listing gains are often followed by profit-booking as early entrants exit, leading to volatility in the first few weeks, said Prasenjit Paul.  =======================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.