Meesho Shares Witness Profit Booking After Hitting 52-Week High: What's Next for Investors?

Meesho shares experienced a significant surge on Thursday, reaching a fresh 52-week and all-time high on higher volumes, before witnessing profit booking. This sharp rise briefly took the company's market capitalization past the Rs 1 lakh crore mark during the session.

Stock Performance

On the National Stock Exchange (NSE), Meesho shares soared as much as 7.98 percent to hit a high of Rs 233.60 apiece, opening with a gap-up gain of about 4.5 percent. However, the stock later pared gains amid profit booking and was trading at Rs 212.45 per share, down 1.81 percent.

Analyst Ratings

UBS initiated a 'Buy' call on the shares of Meesho, with a target price of Rs 220 per share. The firm expects order frequency to increase from 9.2x to 14.7x, although average order value may decline from Rs 274 to Rs 233 as logistics efficiencies are passed on.

Key Highlights

• Meesho's initial public offering was subscribed 79 times, with a listing price of Rs 162.50 per share on the NSE, a premium of over 46 percent to the IPO price of Rs 111.
• The stock is currently trading around 32 percent higher than its listing price.
• The e-commerce platform made a strong debut on December 10, with the Rs 5,421-crore initial public offering.

Remember, this is perspective, not prediction. It's essential to do your own research and consider multiple factors before making any investment decisions.