Meesho Shares Gain 5% After Citi Initiates Coverage with Buy Rating

Mumbai, June 23: Meesho shares climbed as much as 5% after global brokerage Citi initiated coverage on the stock with a Buy rating, citing strong growth potential in India’s rapidly expanding value-commerce segment. 

The stock reacted positively as investors welcomed the new coverage, which added to improving sentiment around the recently listed e-commerce platform. The move also reinforced expectations that Meesho could continue to benefit from rising digital adoption in lower-tier cities and a growing base of price-sensitive online shoppers. As of writing the stock was up 4.7% at Rs 180.3. 

Citi Highlights Strong Position in Value-Commerce 

In its initiation note, Citi said Meesho is well positioned to capitalise on India’s value-commerce opportunity, where affordability-led shopping continues to drive strong user engagement, particularly in Tier-2 and Tier-3 markets. 

The stock jumped as Citi cheered the firm’s low-cost operating model. Source: NSE  

The brokerage pointed to Meesho’s low-cost operating model and large addressable market as key strengths. It noted that the platform’s asset-light structure and deep penetration in smaller cities give it an edge in acquiring and retaining first-time online shoppers. 

Citi also highlighted that the shift in consumer behaviour toward low-ticket, high-frequency purchases is likely to support sustained growth in transaction volumes over the medium term. 

Growth Strategy and Monetisation in Focus 

The initiation comes at a time when investor attention remains focused on how Meesho balances rapid scale-up with improving monetisation. 

The company has built its business around a zero-commission model for sellers, relying instead on logistics, advertising and platform services for revenue generation. Analysts say the key challenge ahead will be increasing revenue per user while maintaining strong user growth momentum. 

Citi’s outlook suggests confidence that Meesho can continue to expand its user base while gradually improving monetisation efficiency as engagement deepens across its ecosystem. 

Investor Sentiment Builds Post Listing 

Meesho’s stock has been closely tracked since its market debut, with sentiment largely driven by expectations around India’s long-term e-commerce expansion story. 

Brokerage initiations such as Citi’s are seen as important sentiment drivers, particularly in newly listed technology-driven companies where valuation visibility evolves over time. The Buy rating has added to optimism that Meesho could emerge as a key player in the value-driven online retail segment. 

Outlook 

Going ahead, Meesho’s stock trajectory is expected to remain linked to execution on key growth levers, including expansion of transacting users, improvement in advertising revenues and gradual movement toward profitability. 

While near-term volatility may persist due to its scale-up phase, Citi’s positive stance highlights growing institutional interest in India’s value-commerce space and Meesho’s potential role in shaping that market. 

Source

•  https://www.nseindia.com/get-quote/equity/MEESHO/Meesho-Limited