Meesho Shares Rebound 1.6% to ₹167.98 After Eight-Day Losing Streak; Choice Sees More Upside

Meesho Shares rebounded 1.6% to ₹167.98 after suffering eight consecutive sessions of declines. The recovery came as bargain hunters entered the stock following a sharp correction that erased more than 16% of its market value in just over a week. Despite the rebound, the stock remains under pressure due to concerns surrounding an upcoming lock-in expiry that could increase share supply in the market.

The recovery provided some relief to investors who watched the stock fall to its lowest level since April. Market participants are now evaluating whether this bounce represents the start of a sustainable recovery or merely a temporary rebound after an extended selloff.

Why Meesho Shares Fell for Eight Consecutive Sessions

The primary reason behind the recent weakness in Meesho Shares is the upcoming lock-in expiry scheduled for June 9, 2026.

Following the expiry, approximately 68% of Meesho’s pre-IPO shares will become eligible for trading. This has raised concerns that early investors, including venture capital and private equity firms, may choose to sell part of their holdings and book profits.

Analysts estimate that shares worth nearly ₹54,000 crore could become eligible for trading after the lock-in period ends. Even if only a small percentage of these shares enter the market, the additional supply could create short-term pressure on the stock price.

This concern has weighed heavily on investor sentiment despite the company’s improving operational performance.

Choice Institutional Equities Remains Bullish

While near-term concerns remain, Choice Institutional Equities continues to maintain a positive outlook on Meesho.

The brokerage has retained its “Add” rating and assigned a target price of ₹210 per share. This target implies substantial upside from current levels and reflects confidence in the company’s long-term growth trajectory.

According to Choice, Meesho’s strong user growth, expanding seller ecosystem, and improving business fundamentals support future value creation. Although the brokerage acknowledges the lock-in expiry as a short-term risk, it believes the company’s underlying growth story remains intact.

This optimistic outlook has encouraged some investors to view the recent correction as a buying opportunity.

Strong Financial Performance Supports Long-Term Growth

One of the biggest positives for Meesho has been its recent financial performance.

During the fourth quarter of FY26, the company reported revenue of ₹3,531.21 crore, representing a year-over-year increase of more than 47%. At the same time, net losses narrowed significantly to ₹166.34 crore compared with ₹1,391.38 crore during the same period a year earlier.

The improvement reflects better operational efficiency, stronger customer engagement, and growth across multiple business segments.

Key highlights from the quarter included:

• Revenue growth of 47%.
• Annual transacting users reaching 264 million.
• Net merchandise value growing more than 43%.
• Order volumes increasing above 40%.
• Significant reduction in losses.

These figures demonstrate that the company continues to scale rapidly despite competitive pressures within India’s e-commerce industry.

Market Concerns Continue Despite Improving Fundamentals

Although Meesho’s operational performance has improved, investors remain cautious.

One concern is valuation. Choice Institutional Equities noted that Meesho trades at approximately 6.1 times enterprise value to revenue, which is higher than several internet sector peers. This premium valuation increases sensitivity to any negative developments.

Additionally, the possibility of profit booking by early investors remains a significant overhang. Historically, many newly listed technology companies in India have experienced increased selling pressure after lock-in periods expired.

As a result, short-term volatility may continue even if the company’s business performance remains strong.

Meesho’s Position in India’s E-Commerce Market

Meesho has become one of India’s largest e-commerce platforms by focusing on value-conscious consumers and small sellers.

The company has built a unique business model centered on affordability, regional expansion, and seller empowerment. This strategy has allowed it to gain significant market share in Tier 2 and Tier 3 cities across India.

Unlike many traditional e-commerce platforms, Meesho focuses heavily on enabling small businesses and entrepreneurs to reach customers through digital channels.

Its growing seller ecosystem and expanding customer base continue to strengthen its competitive position in the market.

These advantages remain important drivers behind bullish long-term projections from analysts.

Technical Outlook for Meesho Shares

From a technical perspective, the recent rebound could indicate the emergence of buying interest near support levels.

After falling more than 16% in eight sessions and declining roughly 22% from recent highs near ₹227, the stock reached levels that attracted bargain hunters. However, investors should remain cautious.

The upcoming lock-in expiry could continue to influence trading patterns over the coming weeks. Any large-scale selling by existing shareholders may create renewed downward pressure.

At the same time, strong earnings growth and positive analyst recommendations may help limit downside risks. The balance between these factors will likely determine the stock’s direction during the second half of 2026.

What Investors Can Learn From This Situation

The recent movement in Meesho Shares highlights the importance of balancing short-term risks with long-term fundamentals.

Many investors focus exclusively on near-term events such as lock-in expiries, while others concentrate on business performance and growth potential. Successful stock research requires evaluating both factors simultaneously.

This approach is equally relevant across the broader stock market, including high-growth sectors such as AI stocks, where short-term volatility often masks long-term opportunities.

Investors who understand market psychology and business fundamentals are often better positioned to navigate periods of uncertainty.

Future Outlook Remains Positive

Despite recent weakness, Meesho continues to demonstrate strong growth characteristics.

The company is expanding revenue, reducing losses, increasing user engagement, and strengthening operational efficiency. These improvements support the positive outlook maintained by several brokerages.

If management continues executing effectively and lock-in-related selling remains manageable, the stock could gradually recover toward analyst target prices.

While short-term volatility is likely, the long-term investment case remains supported by India’s growing e-commerce market and Meesho’s strong competitive position.

Conclusion

The recent rebound in Meesho Shares provides a welcome break after eight consecutive days of losses. The stock climbed 1.6% to ₹167.98 as investors responded to attractive valuations and positive analyst commentary.

Although concerns regarding the June lock-in expiry continue to weigh on sentiment, the company’s improving financial performance and strong growth outlook remain encouraging. Choice Institutional Equities continues to see significant upside potential, maintaining a target price of ₹210.

Investors will closely monitor post-lock-in trading activity and future earnings reports to assess whether Meesho can sustain its recovery momentum.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.