Meesho Limited

Consumer Cyclical — Internet Retail · NSE

₹227.86+₹4.06 (+1.81%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Meesho Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Meesho Limited operates an e-commerce marketplace in India. It operates in two segments, Marketplace and New Initiatives.

IndustryInternet Retail

SectorConsumer Cyclical

Employees2,078

Annual revenue₹12,626 Cr

How does it make money?

Turns over ₹12,626 Cr a year. Of every ₹100 of sales, about ₹-11 reaches shareholders as profit, with ₹-9 left at the operating level before interest, tax and depreciation. Each of its 2,078 employees supports ₹6.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -27.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 25.3% and earnings to grow about 230.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+25.3%

Est. earnings growth+230.0%

Analysts11

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +120% while net margin moved -63% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+120%

Margin effect-63%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 24.00x is a steep premium to book

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

21/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -29.7% to -9.3% over 3 years.
Return on equity is rising
ROE has improved from -67.6% to -31.0%.
Return on capital is rising
ROCE has improved from -67.3% to -27.0%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 436% over 3 years, from ₹12 Cr to ₹63 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -133.9x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴The company is lossmakingFinancial
Net profit of -₹1,358 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 1449% against revenue up 120% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3,976 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -29.7% to -9.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 1449% against revenue up 120%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 23% a year✓ 30.1% CAGR
Latest reported year was 48.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -11%✓ -9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3,976 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -133.9x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -27.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹1.05 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

24.00x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-2.69

Loss-making

Negative earnings per share — the business is losing money

ROE

-31.0%

Weak

Weak capital efficiency

ROCE

-27.0%

Weak

Low return on total capital employed

Debt/Equity

1.43x

Moderate

Moderate leverage

Revenue Growth (YoY)

48.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

65.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹3,976 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

171.9x

Operating Margin

-6.6%

Weak

Thin margins leave little room for error

Net Margin

-8.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.55

Comfortable

Healthy short-term liquidity

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

228.2 / 213.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,735 Cr	₹7,615 Cr	₹9,390 Cr	₹12,626 Cr	+30.1%
EBITDA	-₹1,702 Cr	-₹281 Cr	-₹268 Cr	-₹1,172 Cr	—
EBITDA Margin	-29.7%	-3.7%	-2.9%	-9.3%	—
PAT (Net Profit)	-₹1,672 Cr	-₹328 Cr	-₹3,942 Cr	-₹1,358 Cr	—
EPS	₹-3.7	₹-0.73	₹-8.73	₹-3.11	—
ROE	-67.6%	-14.7%	-272.7%	-31.0%	—
ROCE	-67.3%	-14.0%	-95.9%	-27.0%	—
Total Debt	₹12 Cr	₹72 Cr	₹58 Cr	₹63 Cr	+75.0%
Free Cash Flow	-₹2,346 Cr	₹185 Cr	₹516 Cr	-₹3,976 Cr	—

🟢 Revenue has grown at 30.1% a year over 3 years.

🟢 EBITDA Margin has risen from -29.7% to -9.3% over 3 years (+20.4 pts).

🟢 ROE has risen from -67.6% to -31.0% over 3 years (+36.7 pts).

🟢 ROCE has risen from -67.3% to -27.0% over 3 years (+40.3 pts).

🔴 Total Debt has grown at 75.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,907 Cr

Total Liabilities

₹3,520 Cr

Cash & Equivalents

₹620 Cr

Operating Cash Flow

-₹3,875 Cr

Capex

-₹101 Cr

Shareholding (proxy)

Institutional Holding

43.0%

Insider Holding

36.3%

Analyst Consensus

Recommendations

9 Buy · 3 Hold · 6 Sell

Target Price (Mean)

₹211.17

-7.3% vs CMP

Target Range

₹125 – ₹265

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Meesho share price rallies 5%, nears record high in weak market; here's why

Business Standard, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Meesho share price hits 10-month high as orders surge 75%

Zee Business, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Meesho share price inches close to 52-week high on strong festival sales | Is it time to book profits?

Livemint, 12 Oct

Meesho Share Price Hits Rs 245.50: Time to Book Profits?

Univest, 12 Oct

Meesho share price jumps 6% as content commerce NMV grows 152% YoY; check all Q2 business updates

Upstox, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Meesho share price near post-listing high as mega blockbuster sale sees 75% growth on Day 1

CNBC TV18, 12 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingRisk

WeakBusiness Quality · Financial Health · Profitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑