Meesho shares continue to fall; BofA Sec sees stock at ₹190

Shares of newly-listed e-commerce company Meesho Ltd. were trading 3% lower on Monday, January 12. The decline follows a 3% rise on Friday, which came after the stock had slipped for three consecutive sessions.

Brokerage firm BofA Securities initiated coverage on the stock. BofA Securities assigned Meesho a 'Neutral' rating with a price target of ₹190 per share.

The brokerage said the company is well-positioned to tap the value-focused mass market segment.

According to BofA, Meesho's net merchandise value (NMV) is expected to grow at a compound annual growth rate (CAGR) of 26% between FY26 and FY29. Its adjusted EBITDA margin is projected to turn positive, rising from -3% in FY26 to +3% by FY29.

At current levels, the stock's valuation reflects its strong fundamentals.

Key tailwinds for Meesho, as per the brokerage, include opportunities to gain market share, the scale-up of its fintech business, and expansion into the grocery segment.

Meesho's one-month shareholder lock-in recently expired. Following the expiry, around 109.9 million shares, or nearly 2% of the company's outstanding equity, became eligible for trading.

However, the end of the lock in period does not mean that all these shares will be sold in the open market. It only implies that they can now be traded.

Of the five analysts currently tracking Meesho, three have a 'Buy' rating on the stock, while one each have assigned a 'Hold' and a 'Sell' rating.

Despite the recent correction, Meesho shares continue to trade well above their IPO price. The stock is up nearly 50% from its issue price of ₹111, even though it has slipped about 35% from its post listing peak of ₹254.

Shares of Meesho were trading 2.85% lower on Monday at ₹165.50. The stock is down close to 9% so far in 2026.