News on Medial

Meesho’s shares hit 20% upper circuit after UBS initiates ‘Buy’ call

Entrackr · 4h ago

Medial

Shares of social commerce firm Meesho hit the 20% upper circuit in early trade on Tuesday after global brokerage UBS initiated coverage on the stock with a Buy rating, triggering strong buying interest. The stock was locked at its upper circuit band during intraday trade, with limited sell-side participation, reflecting heightened investor optimism following the brokerage’s note. According to market data, Meesho’s shares surged to around Rs 216 on the NSE, marking one of its sharpest single-day gains since listing. In its initiation note, UBS highlighted Meesho’s differentiated business model and improving execution, particularly its focus on value-conscious consumers in Tier II and Tier III markets. The brokerage also pointed to the company’s zero-commission marketplace approach and a tightening cost structure as key positives supporting its investment thesis. Last week, Meesho made a strong debut in the public markets, listing at a hefty premium and closing one of the largest tech IPOs of 2025. The Bengaluru-based firm opened at Rs 162.5 per share on the NSE, a 46% jump over its issue price of Rs 111. During the last fiscal year, the company posted revenue of Rs 9,390 crore, while its losses before exceptional items and tax stood at Rs 108 crore. In the first half of the ongoing fiscal year (H1 FY26), it reported revenue of Rs 5,577 crore. Over the past few quarters, Meesho has focused on improving operational efficiency by rationalising marketing spends, optimising logistics costs, and strengthening its supplier ecosystem. The company has also doubled down on categories such as fashion and home essentials, which continue to see steady demand from price-sensitive users. As of writing this story, Meesho’s shares remained locked at the upper circuit, with investors closely watching whether the momentum extends into the next trading sessions.