Mumbai: The share of newly listed e-commerce company Meesho continued its strong rally on Wednesday. The stock rose by nearly 8 percent during the day and touched a record high of Rs 233. With this rise, Meesho’s share has gained more than 110 percent in just seven trading sessions from its IPO price of Rs 111. After this sharp jump, the company’s market capitalization crossed Rs 1 lakh crore.
In the previous trading session, the stock closed at Rs 216.35. On Wednesday, it opened higher at Rs 228 and quickly moved up to Rs 233 in early trade, showing strong buying interest from investors.
Brokerage View and Business Model
Global brokerage firm UBS had earlier given a ‘Buy’ rating on Meesho shares with a target price of Rs 220. However, the stock has already moved above this target. According to UBS, Meesho’s business model is strong because it generates positive cash flow on a regular basis. The brokerage said Meesho is different from many other internet-based companies as it follows an asset-light model and operates with negative working capital, which helps in better cash management.
Growth Expectations
UBS expects Meesho’s net merchandise value (NMV) to grow at a strong 30 percent annual rate between FY25 and FY30. This outlook has increased confidence among investors and supported the stock’s sharp rise.
IPO Performance and Recent Trading Trend
Meesho made its stock market debut on December 10. On the listing day itself, the share opened at a premium and ended the session 53 percent higher than its IPO price of Rs 111. After seeing some profit booking for two days, the stock regained momentum. On Monday, it rose more than 3 percent, and on Tuesday it continued to move up even when the overall market was under pressure. On Wednesday, the stock hit a 20 percent upper circuit, showing strong demand.
The company’s IPO received a massive response from investors and was subscribed 79 times, highlighting high interest in the stock.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks. Readers should consult certified financial advisors before making any investment decisions.
