Check Before You Invest : Meesho Ltd

BSE: 544632 NSE: MEESHO ISIN: INE0VDM01015

| Sector: Retail | Industry: e-Commerce

Snapshot

Q.1 Which industry/sub-sector does Meesho Ltd belong to?

Meesho Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.

Q.2 Is Meesho Ltd a good quality company?

Meesho Ltd is a weak quality company, based on a inconsistent 7-year financial track record.

Q.3 Is Meesho Ltd undervalued or overvalued?

Meesho Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Meesho Ltd a good buy now?

Meesho Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Meesho Ltd?

Meesho Ltd revenue growth is 23.3% for FY-2025, which is below its 5-year CAGR of 98.2%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Meesho Ltd?

Meesho Ltd Return on capital employed is -73.96% for FY-2025, which is above its 5-year historical median of -126.32%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Meesho Ltd?

Meesho Ltd Return on Asset is -67.97%, which is in line with its 5-year historical median of -67.73%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Meesho Ltd?

Meesho Ltd Return on equity is -388.66% for FY-2025, which is below its 5-year historical median of -162.28%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Meesho Ltd?

Meesho Ltd Cash conversion cycle is -39 days, in line with its 5-year historical median of -40 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.65	1.86
ROE	-388.66	-162.28
ROCE	-73.96	-126.32
Cash Conversion Cycle	-39 days	-40 days

Q.6 Gross Profit margin of Meesho Ltd?

Meesho Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.5% for FY-2025, which is above its 5-year median of -28.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Meesho Ltd?

Meesho Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -5.94% for FY-2025, which is above its 5-year median of -31.36% indicating increasing margins.

Q.8 Net Profit Margin of Meesho Ltd?

Meesho Ltd Net Profit Margin is -41.37% for FY-2025, is in line with with its 5-year median of -41.37%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-0.5	-28.7
Operating Profit Margin	-5.94	-31.36
Net Profit Margin	-41.37	-41.37

Q.9 Debt to Equity ratio of Meesho Ltd?

Meesho Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Meesho Ltd?

Meesho Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Meesho Ltd?

Promoters hold 16.57% of the Meesho Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Meesho Ltd vs industry peers?

Meesho Ltd revenue CAGR is 98.20%, compared to the industry median CAGR of 35.08%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	23.3	35.1
Gross Profit Growth	0	51.1
Operating Profit Growth	0	40.8
Net Profit Growth	0	-

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.65	1.86
ROE	-388.66	-157.26
ROCE	-73.96	-33.29
Cash Conversion Cycle (days)	-39.39	-12

Valuation & price assessment

Q.1 Stock return of Meesho Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Meesho Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-	31.95
Price to Book	14.45	12.21	5.00
Price to Sales	9.41	7.79	7.87
EV to EBITDA	-2012.49	-1666.08	18.73

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