Motilal Oswal has officially initiated coverage on Meesho, setting a bullish tone for the company’s future performance. Analysts at the firm have assigned a 'Buy' rating, citing a potential target price of Rs 240, which reflects strong confidence in the platform’s current trajectory.
The brokerage attributes this optimistic outlook to Meesho’s asset-light business model, which is expected to drive long-term scalability. According to the research, the platform is strategically positioned to begin generating positive free cash flow by the fiscal year 2027.
Recent financial data supports this sentiment, with Q1 reports indicating a narrowing of net losses alongside a steady rise in marketplace revenue. The firm’s analysis highlights several key catalysts for growth:
- Strong sensitivity to Net Merchandise Value (NMV) expansion.
- Consistent improvements in core operating margins.
- Increasing efficiency in the e-commerce fulfillment ecosystem.
By focusing on its lean operational structure, Meesho appears well-prepared to navigate competitive headwinds. Investors are keeping a close watch as the firm moves closer to achieving sustainable profitability in the coming years.
