Shares of e-commerce platform Meesho have experienced a significant surge, climbing over 100% since their market debut on December 10 last year. The stock, which was listed at Rs 111, reached Rs 222.80 on Tuesday, May 5, 2026, marking a 48.24% increase in just the past month alone. This strong upward momentum has continued for three consecutive sessions.
Investors are keenly awaiting Meesho's fourth-quarter (Q4 FY26) results, scheduled for announcement on Wednesday, May 6, 2026. The company's performance metrics, including its contribution margins which stood at 4.9% in FY25, are a key focus. Equirus Securities maintains a 'Long' rating on Meesho, assigning a target price of Rs 190. The brokerage highlighted the company's monetisation strategies across ads, logistics, content, and fintech, linking them to engagement rather than ticket size, and noted that declining fixed-cost intensity and negative working capital contribute to improved EBITDA margins and free cash flow.
Technical Outlook: Overbought Concerns
Despite the impressive rally, some technical analysts are flagging concerns about the stock's valuation and potential for a near-term correction. Ravi Singh, Chief Research Officer at Mastertrust, pointed out that while the move is supported by strong volumes, indicating robust buying interest, the stock appears overheated. The Relative Strength Index (RSI) is firmly in overbought territory, suggesting limited upside.
Singh advised investors to avoid fresh entries at current levels, noting that Meesho is nearing a key resistance zone around Rs 240. He suggested trailing existing positions with a stop loss at Rs 202 to protect gains.
AR Ramachandran, a Sebi-registered research analyst at Tips2trades, echoed this sentiment, stating, "Meesho stock price is bullish and also overbought on daily charts with next resistance at Rs 237. Investors should book profits at current levels as a daily close below the support of Rs 208 can trigger a fall towards Rs 163 in the near term."
As of March 2026, promoters held a 16.57% stake in the company. The upcoming Q4 results and market reaction will be crucial in determining the stock's trajectory following its remarkable post-IPO performance.