Meesho shares leap 6% as content material commerce NMV grows 152% in Q2. Buy, promote or maintain the inventory?
Content commerce means promoting merchandise by way of content material created by individuals, fairly than solely by way of conventional promoting.
Meesho stated 1.6 lakh lively creators participated in Content Commerce through the interval, with nano creators (these with fewer than 10,000 followers) accounting for 90% of the lively creator base. About 81% of lively creators had been from non-metro India, whereas Tier-3 and Tier-4 trading floors contributed 66% of Content Commerce orders.
Homemakers accounted for 40% of Meesho’s lively Content Commerce creators, whereas younger graduates made up one other 30%, or round 50,000 creators. Around 78% of lively homemaker creators had been from non-metro India.
The firm additionally stated 25% of its lively creators had been first-time creators, pointing to the growth of Content Commerce past established influencers. “We are seeing this translate into significant scale, with Content Commerce NMV rising 152% year-on-year, supported by 1.6 lakh lively creators over the past 12 months,” Nikita Dawda, General Manager, Content Commerce, Meesho, stated in a regulatory submitting.
Buy, promote or maintain Meesho shares?
Last week, overseas brokerage agency Nomura initiated protection with a Reduce name and a goal value of Rs 167.
Nomura stated competitors for Meesho may intensify from horizontal e-commerce platforms and fast commerce (QC), whilst the corporate retains an early-mover benefit. The brokerage expects Amazon and Flipkart to step up their presence in QC and worth commerce (VC), that are rising sooner than general e-commerce. It pointed to Flipkart’s relaunch of Shopsy in May 2026 with a gamified strategy targeted on Gen Z and better person engagement as a step in that course.Days earlier, UBS hiked the goal value by 24% to Rs 260. UBS has raised its FY29-31 NMV estimates by 7-18%, with an analogous improve in contribution revenue estimates and a 20-40% improve in EBITDA estimates. The increased NMV forecasts replicate the continued flywheel impact from vendor and purchaser progress, with sellers rising 81% YoY to 1.04 million in Q1FY27 and consumers rising 29% YoY to 274 million. This has been accompanied by a fast growth in SKUs and logistics companions.
Jefferies has reiterated its Buy name with a goal value of Rs 240, an upside of 10% from present ranges. The asset placement financial institution expects Meesho’s contribution margin (CM) to enhance from round 4.6% at present to five.5% over the following 12 months and additional to eight.5% by FY31. The brokerage expects the advance to be pushed by increased logistics margins, rising monetisation of promoting and working leverage.
Despite these alternatives, administration stays targeted on progress and isn’t actively pursuing broad-based vendor monetisation, Jefferies stated. The firm believes its platform penetration stays effectively beneath its potential.
Disclaimer: This article has been written by Veer Sharma, who isn’t a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his ‘relative(s)’ (as outlined below Section 2(77) of the Companies Act, 2013) don’t maintain any monetary curiosity within the firms talked about on this article as of the date of publication. The views/suggestions talked about on this article, wherever relevant, are these of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They shouldn’t be construed because the views or suggestions of The Economic Times Digital or the journalist. Readers are suggested to think about the unique analysis report and make their asset placement selections based mostly on their very own evaluation. Brokerage disclaimers here.
