Shares of online shopping platform Meesho have delivered a stunning performance on the stock market, doubling investors’ money within just seven trading sessions of its listing. On December 18, Meesho shares jumped nearly 8 percent to hit a fresh record high of ₹233, extending the sharp rally seen since the company’s market debut.

With this surge, Meesho’s stock has climbed around 110 percent from its IPO issue price of ₹111 in just seven sessions. Following the latest rise, the company’s total market capitalisation has crossed the ₹1 lakh crore mark, highlighting strong investor confidence in the newly listed stock.

Brokerage optimism fuels rally
The rally gained further momentum after global brokerage firm UBS initiated coverage on Meesho with a “buy” rating. UBS had assigned a target price of ₹220, which the stock has already surpassed. The brokerage highlighted Meesho’s asset-light business model and negative working capital structure, noting that this enables the company to generate consistent positive cash flows—something many internet-based companies struggle to achieve.

Strong growth outlook
According to UBS estimates, Meesho’s net merchandise value (NMV) is expected to grow at a robust pace of around 30 percent annually between FY25 and FY30. The brokerage also expects contribution margins to improve to 6.8 percent and adjusted EBITDA margins to reach 3.2 percent by FY30.

This growth is likely to be driven by a sharp rise in Meesho’s annual active customer base, which is projected to increase from 199 million to 518 million. In addition, the average number of orders per customer is expected to grow from 9.2 to 14.7 over the same period. While the average order value may decline from ₹274 to ₹233, UBS believes this will be due to improved logistics efficiency, with benefits being passed on to customers through Meesho’s expanding platform.