Meesho shares surge to new post-listing high on MSCI inclusion - Here are the potential inflows it could get

Résumé détaillé

20 analysts currently have coverage on Meesho, of which 11 have a "buy" recommendation on the e-commerce platform, while three others have a "hold" rating. Six analysts have a…

Shares of Meesho Ltd. are trading with gains of 4% on Thursday, November 12, marking their third straight day of gains. The stock has gained in seven out of the last eight trading sessions.

The stock has gained 16% during this eight-day stretch, making a new post-listing high of ₹258.5, crossing the previous high of ₹254.

Meesho will be the fourth new entrant to the MSCI Global Standard Index, the index provider announced earlier this morning, joining the likes of Coforge, LIC and Adani Green Energy. The rebalancing will take place on November 30.

According to Nuvama Alternative & Quantitative Research, Meesho has the potential to receive inflows worth around $307 million as part of the rebalancing upside.

Meesho reported its September quarter results late last month, where its net loss narrowed, as did its loss on the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front. Revenue growth for the quarter stood at 34.4%.

Net Merchandise Value (NMV) during the quarter increased by 23% from last year, while the Festive-aligned Net Merchandise Value (NMV) grew by 33% from last year. Contribution margin expanded to 6% of NMV compared to 4.6% during the June quarter.

According to Meesho's management, customers showed up in strong numbers during this festive season and expects the growth spend to remain elevated through the sale and weeks around Diwali during the ongoing quarter.

20 analysts currently have coverage on Meesho, of which 11 have a "buy" recommendation on the e-commerce platform, while three others have a "hold" rating. Six analysts have a "sell" rating on the stock. The consensus estimate of price targets implies a potential downside of 10% from current levels for Meesho.

Price targets on Meesho range from as low as ₹125 (Macquarie), to as high as ₹285 (Jefferies).

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