Cupid, Meesho shares trade at all-time highs; more upside likely?

Shares of Cupid and Meesho are trading at their record highs with investors guessing if this is a good time to book profit.

While Cupid deals in personal care products such as condoms, personal lubricants, and In-Vitro Diagnostic (IVD) kits, Meesho is an online retailer in the unorganised retail segment, connecting small businesses and individual entrepreneurs with consumers.

Trading at their record highs, both stocks are overbought on charts. While Meesho has a RSI of 71.3, Cupid's RSI stands at 71.3.

In the current session, Cupid shares hit their record high of Rs 393.40. Market cap of the firm stood at Rs 49,691 crore. Later, the stock fell over 4% to Rs 363.25.

Meesho shares too traded near their record high of Rs 259 reached in the last session. The stock hit a high of Rs 258 in the current session with market cap rising to Rs 1.18 lakh crore.

Price targets

Meesho

Brokerage Ventura is positive on the Meesho stock  with a Target Price of Rs 283.

Meesho Ltd is positioned to benefit from the structural expansion of value e-commerce across Tier-II, Tier-III and rural India. Its zero-commission, asset-light marketplace model supports rapid scaling at relatively low capital intensity. Higher order density, AI-led personalisation, Valmo logistics optimisation and monetisation through advertising, seller services and financial services should improve profitability, with EBITDA and PAT expected to turn positive by FY28E

UBS has a price target of Rs 260 on the Meesho stock.

The brokerage raised its net merchandise value (NMV) estimates for Meesho for FY29-FY31 by 7%-18%, along with a similar increase in its contribution profit projections. It also increased its EBITDA estimates for the period by 20%-40%.

Cupid

Jigar S Patel from Anand Rathi said, "The daily chart indicates multiple bearish divergences on the RSI, suggesting weakening momentum despite the prevailing price movement. This signals caution at higher levels, as the stock may witness selling pressure. Hence, avoid initiating fresh long positions at current levels. Existing investors should maintain a trailing stop-loss at Rs 340 on a closing basis to protect profits. A sustained move above Rs 390 would be required to improve the bullish outlook."