Indian e-commerce platform Meesho's stock price dropped by 6.21% in afternoon trade on Friday, following a recent analysis by Nomura. The financial research firm highlighted the challenges faced by Meesho due to increased competition, third-party logistics disruptions, and a premium valuation compared to competitors like Eternal and Swiggy, despite their higher net merchandise value (NMV) growth and cash-cow food delivery businesses.
Nomura's target price of Rs 167 implies an enterprise value to net merchandise value (EV/NMV) ratio of 1.1x for the financial year 2028.
The brokerage firm also noted that key risks for Meesho include faster-than-expected user addition, lower-than-2% annual decline in average order value (AOV), higher-than-expected advertising margins, and lower competitive intensity.
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