Meesho stock dips 10% after hitting new high, surpassing ₹1 trillion mcap

At the high point on Thursday, Meesho stock was up 110 per cent from the IPO price.

Meesho share price today: Meesho stock crossed the ₹1 trillion market capitalisation a week after it debuted on the stock exchanges. On Thursday, thus far, the stock had jumped 7.9 per cent to hit a new high at ₹233.50. 

 

Shortly after crossing ₹1 lakh crore market-cap, Meesho share price erased all gains and slipped into red. At 10 AM, the stock was trading 1.73 per cent lower at ₹211.61, whereas the market-cap stood at ₹95,904.03 crore; shows data on BSE.  In the process, the stock was down nealry 10 per cent from the day's high. The counter saw trades of around 8.87 million shares thus far today compared to the two-week average volume of 14.5 million shares on the BSE. 

 

Meesho was listed on the exchanges at a 46 per cent premium on December 10. From the  issue price of  ₹111 apiece, the scrip has surged 110.36 per cent on Thursday, making Meesho as one of the well-performed IPOs of this calendar year so far. 

 

Why did Meesho share price rise today?

 

Meesho share price extended gains at open as brokerages expressed bullish sentiment for the counter. UBS Global Research started coverage on Meesho with a 'Buy' target and a target price of  ₹220 apiece on Wednesday. The target price implies 1.6 per cent upside from the previous close.

 

The brokerage expects that its merchandise value will keep growing along with contribution and Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) margins, as per media reports

 

Apart from UBS Global Research, Choice Broking has also initiated coverage on Meesho. The brokerage has a 'Buy' rating on the stock and a target price of ₹200. For the bull case, Choice Broking has predicted a target price of ₹234 apiece, which implies 8.16 percent upside from the previous close price.

 

The average 12-month consensus price target implies a downside of  2.5 per cent for Meesho, according to data on Bloomberg terminal. 

 

As far as recent news concerned, Meesho increased its investment in the wholly-owned subsidiary, Meesho Technologies Pvt. Ltd. via rights issue, it informed the exchanges on December 10. Meesho Techologies is an application-based marketplace, which is operatedunder the brand of 'Meesho' that connects sellers and end consumers. The company has a revenue turnover of ₹9,385.8 crore.