Meesho shares turn multibagger! Stock soars over 110% from IPO price to fresh record high — Is it still a buy?

Recently listed e-commerce company Meesho's stock has now turned a multibagger. Meesho share price hit a record high for the third straight day on Thursday, December 18, now soaring as much as 110% from its IPO price of ₹111.

In intra-day deals today, the stock jumped 8% to its day's high of ₹233.50 on the BSE in intra-day deals. This is the fourth straight session of gains for the stock, rising over 41% in this period. Meesho share price climbed 20%, 5.6% and 3.4% in the past three trading sessions.

Meesho’s spectacular post-listing rally came after global brokerage UBS initiated coverage with a ‘Buy’ rating and a ₹220 price target—implying nearly 10% upside from the stock’s intraday peak. The call added fresh momentum to the e-commerce company’s already stunning market debut last week.

Meesho made a blockbuster debut on the bourses last week. It began trading at more than a 46% premium over the issue price of ₹111. On the NSE, the stock opened at ₹162.50, a 46.40% jump, and later surged to ₹172.70, up 55.58%. On the BSE, it listed at ₹161.20, marking a 45.22% rise.

Should you still buy Meesho shares?

Despite the spectacular rally, Harshal Dasani, Business Head at INVAsset, cautioned that Meesho’s rally has shifted focus from listing euphoria to a deeper valuation debate.

“After nearly doubling from its IPO price of ₹111, the stock is now trading close to the ₹220 mark, which incidentally also aligns with the near-term target recently assigned by a leading brokerage. That in itself suggests that a large part of the immediate optimism may already be priced in,” he said.

Dasani noted that Meesho remains a differentiated bet on India’s value-driven consumption story, with deep penetration in tier-2 and tier-3 markets and an asset-light structure enabling operating efficiency. However, he emphasised that the company is still transitioning toward consistent profitability and that investor confidence today reflects long-term opportunity rather than near-term earnings visibility.

“The current valuation leaves limited room for error,” he said, adding that sustaining elevated levels will require “tangible progress on unit economics, operating leverage and competitive intensity management.”

He also highlighted that, unlike established listed tech platforms, Meesho must now demonstrate quarterly discipline and transparency to justify its market valuation. According to him, the stock appears “fairly valued around current levels rather than meaningfully undervalued,” with the ₹220 brokerage target representing cautious optimism.

Meanwhile, Utsav Verma, Head of Research, Choice Institutional Equities, on Tuesday said that its base-case target price for Meesho of ₹200 implies limited near-term upside from current levels, while the bull-case valuation of ₹234 reflects stronger-than-expected improvements in monetisation, operating leverage and execution on the path to profitability.

UBS bullish on Meesho stock

UBS underscored Meesho’s asset-light operating model, accelerating user base and improving financial metrics as reasons for its optimistic stance.

“We believe Meesho’s asset-light, negative working-capital business model positions it well for sustained profitability, supported by a 30% NMV CAGR, rising user engagement and expanding order frequency through FY30,” UBS said in its report.

The brokerage expects Net Merchandise Value (NMV) to grow at a 30% CAGR between FY25 and FY30. During the same period, Annual Transacting Users (ATUs) are projected to rise sharply from 199 million to 518 million, while order frequency is expected to increase from 9.2x to 14.7x. However, the Average Order Value (AOV) is estimated to decline from ₹274 to ₹233 as the platform transfers logistics efficiencies back to the ecosystem. Still, UBS expects contribution margins to expand to 6.8% and adjusted EBITDA margin to touch 3.2% of NMV by FY30, driven by scale and disciplined cost controls.

Meesho’s ₹5,421-crore IPO was subscribed 79.02 times, reflecting exceptional investor enthusiasm. The issue, priced at ₹105– ₹111, comprised a fresh issue of ₹4,250 crore and an OFS of 10.55 crore shares worth ₹1,171 crore at the upper band.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.