Shares of newly listed Meesho, one of India’s fastest-growing e-commerce platforms, witnessed a sharp rally on December 17, 2025, after global brokerage UBS initiated coverage with an optimistic outlook. The stock hit the 20% upper circuit limit on NSE and closed near its all-time high of ₹216.34, reflecting strong investor confidence in Meesho’s business model, growth visibility, and improving profitability trajectory.
With this rally, Meesho’s share price is now up nearly 93% from its IPO issue price of ₹111, making it one of the strongest post-listing performers among recent new-age internet companies. The sharp move highlights how institutional coverage from a global brokerage can act as a powerful catalyst for newly listed stocks.
The rally was sparked after UBS initiated formal research coverage on Meesho and highlighted its asset-light operating structure, strong cash-flow dynamics, and long-term scalability. According to UBS, Meesho benefits from negative working capital, meaning it receives cash from customers before paying sellers and logistics partners. This structure significantly improves free cash flow generation, a rare advantage in the e-commerce space.
UBS also projected that Meesho’s Net Merchandise Value (NMV), a cleaner measure of actual sales after excluding cancellations, refunds, and discounts, is expected to grow at around 30% CAGR between FY25 and FY30E. This growth is driven by rising annual transacting users, higher order frequency per user, and deeper penetration in value-focused categories.
Beyond growth, UBS underlined Meesho’s improving profitability metrics. By FY30E, the brokerage estimates Meesho’s contribution margin could reach around 6.8% of NMV, while adjusted EBITDA margin may improve to nearly 3.2% of NMV. These projections suggest that operating leverage and scale benefits could gradually turn Meesho into a sustainable, profitable e-commerce platform.
Although average order values may moderate over time due to an increase in lower-priced transactions, UBS believes improved logistics efficiency and platform scale will offset this impact.
Meesho made a strong debut on December 10, 2025, listing at a premium of over 46% to its IPO price. On listing day, the stock opened at ₹162.50 on NSE and ₹161.20 on BSE, before extending gains further. Even before the latest rally, the stock had already delivered about 74% returns from the issue price.
The IPO was subscribed over 79 times, reflecting deep interest from both institutional and retail investors. The latest UBS note has further reinforced confidence in Meesho’s long-term growth story.