Meesho slides 40% from peak, slips below listing price. Here is why brokerages still see 26% upside
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Shares of e-commerce firm Meesho have slid about 12% over the past week after its Q3 earnings disappointed the Street. Consolidated net losses for the December quarter ballooned nearly 13-fold to Rs 491 crore, compared with a loss of Rs 37 crore in the year-ago period. The stock has also slipped below its listing price after an initially strong debut, amid concerns over growth sustainability. However, a couple of leading foreign brokerages continue to see silver linings, pointing to factors that could still work in the company’s favour. Meesho was listed in December at Rs 162 on the NSE, marking a 46% premium over the issue price of Rs 111. After rallying sharply to a peak of Rs 254 on December 18, the stock has since reversed nearly 40% and is now hovering around Rs 151, its Thursday closing price. Notably, Meesho had turned into a 129% multibagger within just seven sessions of listing before entering the current downtrend. The Decembe...