Check Before You Invest : Meesho Ltd

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

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

Q: Is Meesho Ltd a good quality company?

Meesho Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Meesho Ltd undervalued or overvalued?

Meesho Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 3.23, Historic Median: -. Price to Book, Current: 2.66, Historic Median: 11.90. Price to Sales, Current: 13.85, Historic Median: 7.95. EV to EBITDA, Current: 75.86, Historic Median: -1635.60

Q: 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

Q: 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: 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: 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: Net Profit Margin of Meesho Ltd?

Meesho Ltd Net Profit Margin is -41.37% for FY-2025, is in line with its 5-year median of -41.37%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: -0.5, Historic Median: -28.7. Operating Profit Margin (%), Current: -5.94, Historic Median: -31.36. Net Profit Margin (%), Current: -41.37, Historic Median: -41.37

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Meesho Ltd undervalued or overvalued?

Meesho Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	3.23	-
Price to Book	2.66	11.90
Price to Sales	13.85	7.95
EV to EBITDA	75.86	-1635.60

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 Net Profit Margin of Meesho Ltd?

Meesho Ltd Net Profit Margin is -41.37% for FY-2025, is in line 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	1.65	1.86
ROE (%)	-388.66	-162.28
ROCE (%)	-73.96	-126.32
Cash Conversion Cycle	-39 days	-40 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Meesho Ltd?

Meesho Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.11, 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

D: Promoter shareholding and pledge status of Meesho Ltd?

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)

E: How does Meesho Ltd performance compare with that of its Peers?

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 (x)	1.65	1.86
ROE (%)	-388.66	-
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.

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

Q.2 Valuation ratios of Meesho Ltd vs historical?

The current P/E ratio of 3.23 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

Q.3 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	3.23	-	31.46
Price to Book	2.66	11.90	5.00
Price to Sales	13.85	7.95	7.95
EV to EBITDA	75.86	-1635.60	18.70

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Check Before You Invest : Meesho Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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