Meesho Shares Down 9% Since Day's High — Here's Why

After being locked in an upper circuit on Wednesday, shares of Meesho had initially continued their upward trend on early Thursday trade, rising up to 4%. However, since then, the stock has fallen considerably.

The stock is currently trading at Rs 211, which accounts for fall of more than 2%. This compares to Wednesday's closing price of Rs 216.

Meesho shares rallied on Wednesday after UBS initiated coverage on the counter, offering a bullish outlook with a target price of Rs 220. This was met in early trade on Thursday.

However, since then, the stock has witnessed major selling pressure, with the relative strength index reaching up to 87 at one point. As a result, Meesho fell rapidly and is now down 9% since day's high.

In fact, the stock has now gained more than 100% over its listing price of Rs 110, although the rapid upward trend has taken its relative strength index to an alarming level of 87.

Meesho shares are down likely on account of profit booking, as the stock has already doubled over its listing price of Rs 110. However, market expert Harshal Dasani, Business Head at INVAsset PMS believes Meesho shares are fairly valued at current levels, despite the unprecedented rally since its listing earlier this month.

"From an investment standpoint, the stock appears fairly valued around current levels rather than meaningfully undervalued. For investors, the focus should shift from headline growth to delivery—how effectively Meesho converts scale into sustainable profitability will ultimately determine whether the post-IPO re-rating holds or normalises over time," he said.