Meesho Shares Slip 8% After 65% Rally: What Retail Investors Should Know

Meesho’s stock fell more than 8% on Dec 23, extending a three‑day losing streak after a huge jump of 65% in its first four trading days.

Price slide and market value

The share price dropped to ₹185.34, taking the company’s market cap below ₹85,000 crore. In just three sessions the stock is down over 21% from its recent high.

What analysts are saying

Bonanza analyst Abhinav Tiwari calls Meesho a solid long‑term business, but says the current price is too high for short‑term investors. He points out that the rapid rise may have outpaced the company’s fundamentals, making the risk‑reward balance unattractive.

INVasset PMS head Harshal Dasani adds that much of the optimism is already priced in. The firm is still working toward consistent profits, and future gains will depend on improving unit economics, operating leverage, and handling competition.

Key concerns for investors

• Valuation risk: The stock’s price is well above target levels set by many brokers.
• Execution risk: Turning scale into sustainable profitability remains uncertain.
• Profitability timeline: Near‑term earnings visibility is limited; most investors are betting on long‑term growth.

Background on the IPO

Meesho listed on the NSE on Dec 10 at ₹162.50, a 46% premium to its IPO price of ₹111. The IPO raised ₹5,421 crore and was subscribed 79 times. Since listing, the stock is about 32% above the debut price and roughly 67% above the IPO price.

Takeaway

While Meesho’s growth story looks promising, the recent price surge may have priced in much of the optimism. Investors might consider waiting for a lower entry point to improve the risk‑reward balance.

Disclaimer

Remember, this is just an opinion, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.