Meesho drops over 6% after Nomura starts coverage with Reduce rating
Meesho shares fell more than 6% intraday after Nomura initiated coverage with a Reduce rating and a ₹167 target price, implying nearly 24% downside. The brokerage flagged valuation concerns relative to Eternal and Swiggy.
What happened
Meesho shares fell over 6% after Nomura began coverage with a Reduce rating and Rs 167 target, citing valuation concerns versus Eternal and Swiggy. Ola Electric
Key facts
- Meesho fell over 6% intraday
- Nomura target price: Rs 167
- Nomura target implies nearly 24% downside
- Ola Electric fell over 9% intraday
- PB Fintech fell over 4% intraday
What changed
Meesho shares fell over 6% after Nomura began coverage with a Reduce rating and Rs 167 target, citing valuation concerns versus Eternal and Swiggy. Ola Electric also declined over 9%, while PB Fintech and Welspun Corp saw notable moves.
Why this matters
Nomura’s Reduce rating and ₹167 target, implying nearly 24% downside, signal that Meesho’s current valuation may be vulnerable unless earnings and monetization outperform expectations.
What to watch
- Meesho's next quarterly GMV, order-volume, active-user, and revenue-growth disclosures
- Contribution-margin and EBITDA trends, including fulfillment, payment, and customer-acquisition costs
- Any changes in seller commissions, advertising monetization, or platform take rate
- Management commentary on discounting, repeat purchase behavior, and competitive intensity
- Further target-price changes or rating actions from other brokerages