MEESHO LTD. RISE 1% AFTER RS 1,885 CRORE BLOCK DEAL

MEESHO Shares of online retailer Meesho gained around 1 percent on Friday after a large block deal worth Rs 1,885.2 crore was executed on the NSE on November 13. In the transaction, approximately 7.64 crore shares, representing a 1.65 percent equity stake in the company, changed hands at Rs 247 per share. Meesho has around 463 crore outstanding shares, of which approximately 226 crore shares are part of the public float. The stock has gained nearly 10 percent over the past month. Meanwhile, global brokerage UBS remains positive on the company's growth prospects. The brokerage values Meesho using a combination of discounted cash flow and valuation multiples. Under its multiples-based valuation approach, UBS has applied an unchanged enterprise value-to-EBITDA multiple of 40 times to the average estimated EBITDA for FY30 and FY31. After discounting the valuation back by two years, the brokerage arrived at a price target of Rs 260 per share. UBS noted that Meesho's management remains confident about its FY27 growth outlook. The shift in the Diwali festive season from October 2025 to November 2026 is expected to result in slower growth in the second quarter and stronger growth in the third quarter. Despite this shift in festive demand, management believes that low-30 percent net merchandise value growth remains achievable for FY27.