Meesho Share Price: E-commerce company Meesho made a strong debut in the stock market on Wednesday. The company’s shares were listed on NSE with a premium of about 46 percent over its IPO price. Meesho’s IPO was open for subscription between December 3 and 5 and was subscribed 79 times by investors. The company had issued shares in the IPO at a price of ₹111 per share. Now brokerage firms are also bullish on Meesho. He has given a target price of ₹200 for the company.
How was the listing on NSE and BSE?
Meesho shares were listed on NSE at ₹162.50, which is 46.4 percent higher than its IPO price. Whereas on BSE the shares opened at the level of ₹161.20, which shows a premium of about 45.23 percent. The company’s market cap crossed ₹72,751 crore soon after the listing.
Share made new high after listing
Meesho shares hit an intra-day high of ₹177.49 shortly after listing. This level is about 60 percent more than the IPO price. The special thing was that the listing of Meesho left behind even the expectations of the gray market. The shares were expected to be listed in the gray market at a premium of around 39 percent.
Strong hold in Tier-2 and Tier-3 cities
Meesho has built a strong presence in tier-2 and tier-3 cities of India. It has also been challenging for companies like Amazon and Flipkart to penetrate these markets. The company has said that the funds raised from the IPO will be used for cloud infrastructure, marketing, brand building, inorganic growth and other corporate needs.
Analyst’s opinion on target price
Choice Institutional Equities has given BUY rating on Meesho and set a target price of ₹200. This is a total upside of about 82 percent compared to the issue price of IPO i.e. ₹ 111. At the same time, there is a potential upside of about 17.65 percent compared to the current market price i.e. Rs 170. The brokerage says Meesho’s strong foothold in the value e-commerce segment, rapidly growing user base and Valmo’s role in logistics make the company strong in the long term.
According to the report, Meesho’s revenue is expected to grow at a CAGR of about 31 percent between FY25 to FY28. At the same time, EBITDA is expected to be positive by FY27. The brokerage believes that the stock is currently trading at lower valuations compared to its listed peers and as profitability improves, the share price may see further upside.
Hold advice for long term
According to Shivani Nyati of Swastika Investmart, Meesho has become free cash flow positive in FY 2025. Additionally, being India’s only ‘value e-commerce’ company, Meesho also enjoys a premium valuation.
Mahesh M Ojha of Kantilal Chhaganlal Securities says that Meesho’s focus is on value, scalability and rapidly growing user base. According to him, investors should hold this stock for medium to long term.
Should short term investors book profits?
Prashant Tapse, research analyst at Mehta Equities, believes that short term investors can book profits. At the same time, investors with higher risk appetite can hold shares for 12 to 18 months, because there are long-term growth prospects in the company.
According to Narendra Solanki of Anand Rathi Shares, Meesho’s future earnings will depend on how well the company controls expenses and how effective the marketing is. His advice is that investors who have got shares in the IPO, should withdraw some profit on the listing and hold the remaining shares for the long term.
Shares of BSE, CDSL and Angel One fell for the third consecutive day, prices fell by 5%.
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