Meesho's shares jumped 5% to ₹173 on Friday, recovering from a three‑day slide that erased about 10% of their value.
What Triggered the Recent Drop?
The fall started when a one‑month lock‑in for pre‑IPO investors ended. About 109.9 million shares – roughly 2% of the company – became free to trade, increasing supply in the market.
At the same time, Meesho announced that Megha Agarwal, a senior manager, resigned. The company named Milan Partani as the new General Manager for the Commerce Platform while he continues in his previous role.
Analyst Outlook
JM Financial, a domestic brokerage, started covering Meesho with a “Reduce” rating and set a target price of ₹170. The firm says the stock has already run up sharply since its debut, leaving limited room for further gains.
Still, JM Financial believes Meesho has strong long‑term growth potential and can become more profitable. The firm highlighted a new cost‑saving tool called Valmo, which helps sellers lower fees and opens up new product categories.
Current Valuation
- Shares are still down about 32% from their recent high of ₹254.
- However, they trade roughly 56% above the IPO price of ₹111.
- The stock opened at ₹162 on December 10, a 46% premium to the issue price.
What This Means for Investors
The bounce shows some buying interest at lower levels, but analysts warn that big upside may be limited unless the company shows new growth drivers.
Investors should watch future earnings reports, any further management changes, and how well Meesho can expand its user base while controlling costs.
Remember, this is perspective, not a prediction. Do your own research and consider talking to a certified financial advisor before making any decisions.