JM Financial Initiates Coverage on Meesho with 'Reduce' Rating; Stock Rises 3%

• JM Financial initiated coverage on Meesho with a 'Reduce' rating, setting a target price of 170 rupees per share for March 2027.
• Despite the 'Reduce' rating and previous declines, Meesho's stock rose 3%, increasing its market capitalization to approximately 77,000 crore rupees.
• The brokerage believes that Meesho holds a strong position in Indian e-commerce, but future growth potential is already factored into the current share price.
• JM Financial projects Meesho's revenue to grow at a 27% CAGR during FY25-30, with an adjusted EBITDA margin of 3.3% by FY30.
• Key risks include stabilizing logistics costs, increasing competition, and challenges in ad-based monetization, while new revenue sources like Meesho Mall offer opportunities.

Why It Matters: JM Financial initiated coverage on Meesho with a 'Reduce' rating, citing limited upside despite a 3% stock rise.