$MEESHO

Meesho Ltd fell more than 4 percent in early trade on Friday, making the stock one of the biggest losers on the BSE 500 and NSE 500, despite the e-commerce platform reporting a stronger June quarter and receiving a bullish brokerage upgrade. The stock was trading at Rs 180.5, down 4.4 percent, even as the broader market remained under pressure. At 9:39 am, the Sensex was down 714 points, or 0.9 percent, at 75,677, while the Nifty declined 200 points, or 0.8 percent, to 23,670. Following the earnings, a brokerage upgraded Meesho to 'Buy' with a target price of Rs 220, implying an upside of more than 16 percent from the previous close. The brokerage said the company's June quarter performance reinforced its positive medium-term outlook, driven by strong user-led growth, an expanding seller base and improving monetisation. Meesho reported a consolidated net loss of Rs 132.8 crore for the June quarter, significantly lower than the Rs 289.4 crore loss recorded a year earlier. Revenue from operations rose 48 percent year-on-year to Rs 3,712.8 crore, reflecting strong growth in platform activity. The company's Net Merchandise Value (NMV) increased 34 percent year-on-year to Rs 11,614 crore, while the contribution margin expanded to 4.6 percent of NMV, supported by logistics efficiencies and better platform monetisation. Meesho also continued to deepen its presence beyond metro cities. The company said 45 percent of its sellers are based in Tier 2 and smaller towns, while the number of sellers from Tier 4 cities grew 125 percent year-on-year. Meanwhile, Meesho Mall, the company's branded marketplace, expanded its portfolio to more than 1,200 brands and posted nearly 93 percent year-on-year growth. Its Content Commerce business also gained momentum, with NMV surging 141 percent, aided by AI-powered creator tools that increased the number of active order-generating content pieces to 1.7 million.