Meesho slips after block deal as UBS raises target price to Rs260
Meesho fell 1.06% to Rs237.62 after block trades involving 3.86% of shares. UBS lifted its FY29–FY31 NMV forecasts by 7–18% and EBITDA estimates by 20–40%, raising its target price from Rs210 to Rs260.
What happened
Meesho shares slipped after a block deal involving 3.86% of shares traded. UBS raised its medium-term forecasts, lifting FY29-FY31 NMV estimates by 7-18% and
Key facts
- Texmaco Infrastructure: 1,28,10,900 shares at Rs 115.02, worth Rs 147.35 crore; stock rose 6.21% to Rs 122.17
- Meesho: 3.86% shares traded in a block, equivalent to 0.8% of outstanding shares; stock fell 1.06% to Rs 237.62
What changed
Meesho shares slipped after a block deal involving 3.86% of shares traded. UBS raised its medium-term forecasts, lifting FY29-FY31 NMV estimates by 7-18% and EBITDA projections by 20-40%, with a Rs 260 target price.
Why this matters
Meesho’s 1.06% post-block-deal decline contrasts with UBS’s stronger long-term outlook, reinforcing the need to sustain NMV growth and convert scale into EBITDA gains.
What to watch
- Disclosure of the block-deal buyers and sellers, plus any subsequent promoter, investor or pre-IPO shareholder stake changes.
- Quarterly NMV/GMV growth, order frequency, active transacting users and take-rate trends.
- EBITDA or contribution-margin progression relative to expectations embedded in UBS's 20-40% estimate increase.
- Advertising, logistics and fulfillment-cost metrics that determine operating leverage.
- Competitive pricing, seller incentives and customer-acquisition spending by Amazon, Flipkart and fast-growing commerce rivals.