CLSA has initiated coverage on Meesho with an Underperform rating and a target price of ₹150, implying a 28% downside from the stock's current price of ₹207 as of August 27. According to CLSA, the brokerage's central concern is that while Meesho has built a massive consumer franchise, turning that scale into sustainable monetisation could prove considerably harder. CLSA estimates that Meesho's current valuation is already pricing in a meaningful improvement in monetisation, with its target price based on an equal-weighted blend of relative P/E valuation and DCF valuation. The brokerage notes that the wide range of possible outcomes makes the stock a high-risk investment, with faster-than-expected monetisation supporting the bull case but weaker execution potentially resulting in significant downside.
Meesho is being valued as a play on value e-commerce, small sellers and first-time online shoppers. As reported by The Economic Times, the brokerage expects Meesho's annual transacting users to grow to 409 million by FY29, while placed orders are seen rising to 5.62 billion. The platform currently serves over 274 million annual transacting users and more than 9.61 lakh sellers through a zero-commission, asset-light platform. Ventura expects GMV and NMV to grow to ₹1.28 lakh crore and ₹79,137 crore, respectively, by FY29. Revenue is projected to rise to ₹25,403 crore by FY29, helped by higher marketplace monetisation, logistics revenue and advertising. The brokerage expects Meesho to turn EBITDA and net profit positive by FY28, with EBITDA projected to rise to ₹1,404 crore by FY29 and net profit at ₹1,702 crore. EBITDA margin is expected to improve from a negative 11.8% in FY26 to 5.5% by FY29, while net margin is projected to rise from a negative 10.8% to 6.7%.
CLSA identifies significant monetisation challenges despite Meesho's massive user base. The brokerage believes the very characteristics that make Meesho successful also create a monetisation challenge, as a significant portion of its users have relatively low purchasing power, limiting revenue per user and the potential for higher-value transactions. CLSA estimates Meesho had more than 274 million annual transacting users at the end of FY26 and expects that base to rise to 366 million by FY29 and 440 million by FY35. While CLSA sees several potential monetisation avenues including logistics, advertising, payments, lending, financial services and content, it argues that most of these opportunities remain at relatively early stages. The brokerage expects Meesho's logistics business to improve over time and sees advertising revenue as a larger contributor, but views payments, lending and content monetisation as highly competitive areas in India.
LG Electronics India is positioned as a bet on rising appliance penetration, premiumisation, manufacturing expansion and India's broader consumer durables cycle. According to The Economic Times, LG India has market leadership across major categories, with about 30% share in refrigerators, 34% in washing machines, 28% in televisions and 21% in inverter room air conditioners. The company's FY26 revenue stood at ₹24,605 crore, while profit after tax was ₹1,685 crore. Ventura expects revenue, EBITDA and PAT to grow at a CAGR of 13.3%, 22.8% and 21.5% respectively over FY26-FY29. Revenue is projected to reach ₹35,758 crore by FY29, while EBITDA and PAT are expected at ₹4,457 crore and ₹3,018 crore respectively. EBITDA margin is expected to improve from 9.8% in FY26 to 12.5% by FY29. The brokerage also highlighted LG India's ₹5,000 crore Sri City plant as a key long-term trigger, which is expected to expand compressor capacity from 1 million units to 3 million units and nearly double room AC capacity, reducing import dependence and improving margins.
