Meesho Limited stock is stealing the spotlight on Dalal Street again on Thursday, December 18, after the newly listed e-commerce player extended its post-IPO surge to fresh highs—before running into sharp profit booking. Intraday, Meesho shares touched ₹233.60 on the NSE and briefly pushed the company’s market capitalisation past ₹1 lakh crore, but later pared gains as traders locked in quick returns. [1]
By early afternoon, the stock was still volatile, reflecting an unusually intense tug-of-war between “new listing momentum” and “valuation reality checks.” Google Finance showed Meesho around ₹220 midday, with the day’s range spanning roughly ₹206.60–₹233.60. [2]
Meesho share price: what happened on Dec 18
The sequence on Thursday is a classic post-IPO thriller:
- Fresh all-time high: Meesho shares hit about ₹233.5–₹233.6, extending a rally that has taken the stock to roughly double its IPO price of ₹111 in only about seven trading sessions. [3]
- Profit booking kicks in: After the spike, selling pressure surfaced and the stock pulled back sharply, with reports noting it traded around the ₹212 zone late morning after the high. [4]
- Why the swing matters: This isn’t just a “green or red” day—Meesho’s intraday reversal is being widely read as a first stress test of how much upside is left after a breakout run driven by bullish brokerage initiations and momentum flows. [5]
Why Meesho stock is moving: the two main catalysts
1) UBS initiated coverage — and lit the match
A major driver behind the latest leg of the rally has been UBS initiating coverage with a “Buy” rating and a price target of ₹220. Multiple market reports credit that call with reigniting demand, including the prior session’s surge that pushed the stock into an upper circuit. [6]
Here’s the key nuance investors are chewing on today: the stock has already traded above (or right around) UBS’s ₹220 target during the surge. That tends to invite “target met, now what?” behaviour—especially among short-term traders. [7]
UBS’s core forecast (long runway thesis):
UBS is essentially betting that Meesho’s model can scale profitably over time, projecting (among other metrics) Net Merchandise Value (NMV) growth of ~30% CAGR through FY25–FY30, with improving contribution margins and profitability metrics as scale rises. [8]
2) “Big IPO momentum” plus scarcity value in listed consumer internet
Meesho is coming to market at a time when investors are actively hunting for scaled consumer internet stories—especially those positioned outside the top-tier metros. That scarcity factor can amplify price discovery after listing, and Thursday’s action still looks like the market is arguing about what Meesho should be worth—not what it was worth in the IPO book. [9]
Analyst targets and forecasts: what the Street is actually saying
UBS: Buy, ₹220 target — but model runs to FY30
As noted, UBS set a ₹220 target and highlighted the company’s asset-light, negative working-capital characteristics and scaling potential. It also laid out operating forecasts (NMV growth, engagement, margin expansion) that stretch to FY30—signalling a long-duration bet, not a one-quarter trade. [10]
Choice/Choice Broking: Buy, ₹200 base case; ₹234 bull case
Other coverage has also begun to stack up. Reports on December 18 highlighted Choice Broking initiating with a ‘Buy’ rating and a ₹200 target, while also outlining a bull-case valuation around ₹234—a level the stock effectively flirted with intraday. [11]
Consensus isn’t unanimously euphoric
One of the more sobering data points in today’s coverage: Business Standard reported that the average 12‑month consensus price target implied about a 2.5% downside, based on Bloomberg terminal data. In other words, after the rocket launch, some consensus models are effectively saying: the easy upside may have already happened. [12]
The technical picture: why “overbought” is suddenly part of the headline
If you’ve been anywhere near a trading desk today, you’ve heard this word: RSI (Relative Strength Index). NDTV Profit reported Meesho’s RSI hitting around 87 at one point—an “overbought” zone that often coincides with swift pullbacks, particularly in new listings where supply-demand can be jumpy. [13]
That technical overheating narrative fits neatly with Thursday’s price action: a sharp early push, followed by a fast fade consistent with profit booking. [14]
IPO recap: the numbers driving the “double in a week” storyline
Meesho’s move is easier to appreciate with the IPO context:
- IPO price band: ₹105–₹111 per share [15]
- IPO size: about ₹5,421 crore, including a fresh issue and OFS [16]
- Subscription: about 79x, reflecting very strong demand [17]
- Listing: shares listed around ₹161–₹162.5 (roughly 45–46% premium) [18]
That strong IPO-to-listing gap created a base of instant paper gains—fuel for both momentum buying and equally aggressive profit taking.
What Meesho’s business model is (and why it matters for the stock)
Meesho’s public-market pitch is not “we are another marketplace,” but rather “we are the mass-market, value-first marketplace with a different economic engine.”
Key points frequently cited in coverage:
- Zero/low commission positioning (relative to many marketplace norms)
- Focus on Tier 2–3 consumers and value-led categories
- Monetisation levers that can expand over time, including logistics and advertising, even if seller commissions aren’t the core engine today [19]
Ahead of the IPO, Reuters also reported Meesho’s push to use AI (including chat/voice agents) and expand into new business lines while pursuing profitability improvements—an important thread because the market is currently paying up for “operating leverage stories,” not just “GMV stories.” [20]
Company filings: where some IPO proceeds are going
On the corporate actions and disclosures front, Meesho also reported a further investment in its wholly owned subsidiary, Meesho Technologies Private Limited (MTPL) via a rights issue—explicitly framed as part of the utilisation of proceeds outlined in the prospectus. [21]
The filing states:
- Investment of up to ₹28,900 million (rights basis) [22]
- MTPL turnover (revenue from operations for Mar 22, 2024 to Mar 31, 2025) shown as ₹93,858.74 million [23]
For investors, this is a reminder that part of the IPO story is not just “stock went up,” but “capital is now being deployed,” and execution will be judged quarter by quarter.
Valuation reality check: why P/E doesn’t work here (yet)
If you’re trying to slap a traditional valuation multiple on Meesho, you run into a blunt fact from the offer materials: because the company incurred a loss in FY2025, EPS is negative and the P/E ratio is not ascertainable (as noted in the IPO-related investor notice). [24]
That’s not a deal-breaker—many internet platforms list ahead of steady profitability—but it raises the bar on what markets will demand next: evidence that scale is translating into durable margins, not just bigger topline.
“Should you buy Meesho stock now?” What today’s analysis suggests
Today’s coverage splits into two camps:
The bullish case (why the rally might still have legs):
- Meesho is seen as a differentiated, mass-market platform with potential to expand monetisation and margins over a multi-year horizon. [25]
- Some brokerage frameworks still argue for upside based on longer-term scaling and operating leverage (even if near-term targets are being hit fast). [26]
The cautious case (why investors are being warned not to chase):
- After a near-doubling from the IPO price, multiple commentators are explicitly warning that “a lot of optimism may already be priced in.” [27]
- Technical overheating signals (RSI ~87) and visible profit booking suggest the stock may be prone to sharp pullbacks. [28]
Even Dipan Mehta of Elixir Equities described Meesho as a “concept play” and advised caution about chasing after a euphoric post-listing run, noting such moves can be followed by corrections. [29]
Levels and datapoints investors are watching next
Without turning this into a chart-fest, a few reference points matter because they show where the market is anchoring:
- Day range (Dec 18): about ₹206.60–₹233.60 [30]
- Previous close: about ₹216.34 [31]
- “Psychological” zone: ₹220 has become a battleground because it is both a headline analyst target and roughly where the stock has been oscillating today. [32]
The bottom line for Meesho stock on Dec 18, 2025
Meesho Limited stock has delivered one of the most dramatic post-IPO runs of 2025, and December 18 is reinforcing both sides of the narrative:
- The bull story is about a scaled, value-led e-commerce platform with multi-year monetisation levers and improving unit economics—validated by major brokerage initiation and long-horizon forecasts. [33]
- The bear (or at least cautious) story is about a stock that sprinted to (and beyond) key targets extremely fast, flashing overbought signals and drawing profit booking the moment new highs were printed. [34]
In plain English: the market is now done “welcoming Meesho to the exchanges” and is starting the harder job—pricing Meesho’s execution risk in real time.
References
1. www.moneycontrol.com, 2. www.google.com, 3. www.livemint.com, 4. www.moneycontrol.com, 5. www.business-standard.com, 6. www.livemint.com, 7. www.livemint.com, 8. www.livemint.com, 9. www.reuters.com, 10. www.moneycontrol.com, 11. www.business-standard.com, 12. www.business-standard.com, 13. www.ndtvprofit.com, 14. www.ndtvprofit.com, 15. www.financialexpress.com, 16. www.livemint.com, 17. www.livemint.com, 18. www.livemint.com, 19. www.reuters.com, 20. www.reuters.com, 21. bsmedia.business-standard.com, 22. bsmedia.business-standard.com, 23. bsmedia.business-standard.com, 24. www.morganstanley.com, 25. www.investing.com, 26. www.livemint.com, 27. www.livemint.com, 28. www.ndtvprofit.com, 29. m.economictimes.com, 30. www.google.com, 31. www.google.com, 32. www.moneycontrol.com, 33. www.investing.com, 34. www.ndtvprofit.com
