Shares of Meesho will be in focus heading into trade on Tuesday after international brokerage Citi initiated coverage on the stock with a Buy rating and a target price of Rs 210, implying an upside of 23% from current market levels.The brokerage believes the company is well positioned to capitalise on India's growing e-commerce market, supported by its strong presence beyond Tier-1 cities, extensive long-tail seller network, zero-commission logistics model, and a simplified advertising platform.Meesho currently has more than 264 million annual transacting users, up 33% year on year, while its seller base has crossed 950,000, marking an 87% year-on-year increase. Citi expects the company to deliver a 27% CAGR between FY26 and FY29, driven by growth in users and purchase frequency, despite a projected 4% decline in average order values.The brokerage forecasts Net Merchandise Value (NMV) of Rs 85,400 crore in FY29, along with adjusted EBITDA of Rs 1,830 crore. For FY30, NMV is expected to increase to Rs 99,200 crore, while adjusted EBITDA is projected at Rs 3,570 crore.Citi expects Meesho's adjusted EBITDA margin to improve to 2.1% in FY29 and 3.6% in FY30, with advertising revenue emerging as the key profitability driver. The brokerage said execution of the company's Valmo logistics network and the performance of its advertising technology platform will be important factors to monitor.The target price is based on a valuation of 50 times FY29 EV/adjusted EBITDA, discounted back to FY28.Meesho share price is down 13% in one month and 6% in 2026.Sensex, Nifty today: Catch all the LIVE stock market action hereMeesho Q4 resultsThe company sharply reduced its consolidated losses in the March quarter, reporting a loss of Rs 166 crore compared with Rs 1,391 crore in the same period last year, marking an 88% decline. The loss is attributable to the owners of the parent company.Revenue from operations during the quarter increased 47% year on year to Rs 3,531 crore from Rs 2,400 crore a year earlier. On a sequential basis as well, losses narrowed from Rs 491 crore reported in Q3FY26, while revenue remained largely flat compared with Rs 3,518 crore in the January-March quarter of FY26.Meesho, which says it is India’s largest e-commerce platform by Annual Transacting Users (ATUs) and order volumes, posted a net merchandise value (NMV) of Rs 11,371 crore in Q4FY26, up 43% year on year. Total orders during the quarter rose 43% to 717 million, supported by continued onboarding of new users and stronger engagement from existing customers.For FY26, the company said it continued expanding India’s e-commerce market and emerged as the country’s most downloaded shopping app, while also maintaining leadership in Annual Transacting Users and order volumes. ATUs rose 33% year on year to 264 million, while total orders increased 45% to 2.67 billion.(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times)