Meesho Shares Plunge 10% After Rally: What's Next for Investors?

• Meesho shares hit a 10% lower circuit at Rs 201.68 on December 22, following a significant surge earlier in the month.
• The stock had jumped 65% between December 15-18, with the recent fall attributed to profit booking.
• Experts like Abhinav Tiwari (Bonanza) and Harshal Dasani (INVasset PMS) view Meesho as a strong long-term business but warn of unattractive near-term risk-reward due to high valuation.
• Analysts suggest waiting for a more attractive price, as optimism may have run ahead of fundamentals, despite improving company fundamentals.
• Meesho's IPO debuted at a 46% premium, and the stock remains significantly above its listing and IPO prices.

Why It Matters: Meesho's recent share drop signals profit booking after a sharp rally; experts advise caution on valuation.