Meesho shares drop after BoFA's 'Neutral' rating
Meesho's stock took a 5% hit on Monday, closing at ₹163.85, right after Bank of America (BoFA) gave it a "Neutral" rating and set a target price of ₹190.
The timing wasn't great either—a lock-in period ended, releasing nearly 110 million shares into the market, which added to the dip.
What does Meesho actually do?
Meesho is an Indian e-commerce platform that's made its mark by targeting value-focused shoppers in smaller cities and towns.
Competing with big names like Flipkart and Amazon, Meesho keeps costs low for sellers and earns from ads and logistics services.
Quick numbers & future outlook
Meesho's IPO last month was a big deal—raising over ₹5,000 crore with huge demand from investors. Shares debuted at a strong 46% premium but have since slipped from their peak of ₹254.
Financially, the company reported ₹5,858 crore in income but posted a loss of ₹701 crore last quarter.
Still, BoFA expects things to look up as Meesho grows its market share and expands into fintech and groceries.