Ventura initiates coverage on Meesho and LG India, sees up to 35% upside

Ventura Securities has initiated coverage on Meesho and LG Electronics India with buy ratings, betting on two different sides of India’s consumption story. The brokerage has set a target price of Rs 278 on Meesho, implying a 35% upside from its current market price of Rs 205.

For LG Electronics India, Ventura has set a target price of Rs 2,141, implying a 27% upside from its current market price of Rs 1,688.

Meesho is being valued as a play on value e-commerce, small sellers and first-time online shoppers. LG Electronics India is being positioned as a bet on rising appliance penetration, premiumisation, manufacturing expansion and India’s broader consumer durables cycle.


For Meesho, Ventura said India’s e-commerce market is entering a structural growth phase, helped by internet penetration, digital payments and online retail adoption across Tier II, Tier III and rural India. The brokerage said Meesho has built itself as a leading value-commerce marketplace, serving over 274 million annual transacting users and more than 9.61 lakh sellers through a zero-commission, asset-light platform.

Ventura expects Meesho’s annual transacting users to grow to 409 million by FY29, while placed orders are seen rising to 5.62 billion. The brokerage also expects GMV and NMV to grow to Rs 1.28 lakh crore and Rs 79,137 crore, respectively, by FY29. Revenue is projected to rise to Rs 25,403 crore by FY29, helped by higher marketplace monetisation, logistics revenue and advertising.

Ventura expects Meesho to turn EBITDA and net profit positive by FY28. EBITDA is projected to rise to Rs 1,404 crore by FY29, while net profit is expected at Rs 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%.

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The brokerage said Meesho’s zero-commission model lowers selling costs for merchants and helps the platform attract smaller sellers. Its logistics platform Valmo, advertising business, seller services, content commerce and financial services are expected to become larger revenue pools over time.

LG Electronics India is a more traditional consumption story, but Ventura places it in the middle of several long-term themes: appliance penetration, premiumisation, exports, B2B cooling and localisation.

Ventura said 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 brokerage said the company benefits from strong brand recall, a wide product portfolio and a nationwide distribution and service network.

LG India's FY26 revenue stood at Rs 24,605 crore, while profit after tax was Rs 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 Rs 35,758 crore by FY29, while EBITDA and PAT are expected at Rs 4,457 crore and Rs 3,018 crore, respectively.

Margins are expected to improve as the company increases localisation, expands exports and scales higher-margin B2B opportunities. Ventura expects EBITDA margin to rise from 9.8% in FY26 to 12.5% by FY29.

The brokerage also pointed to LG India's Rs 5,000 crore Sri City plant as a key long-term trigger. The plant is expected to expand compressor capacity from 1 million units to 3 million units and nearly double room AC capacity. Ventura said this can reduce import dependence, improve margins and support exports.

Another possible growth area is data centre cooling. Ventura said India’s data centre capacity is expected to rise sharply, creating demand for cooling solutions. It said cooling accounts for a meaningful share of data centre infrastructure cost and LG’s compressor and HVAC capabilities can help it benefit from this opportunity.

The risks for LG India include input cost volatility, execution risk in the Sri City ramp-up, working capital intensity and dependence on consumer demand growth.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)