Ola Electric Mobility Shares: Big blow to Ola shares, shares fell 84% from all-time high, know why the brokerage turned its back?

Ola Electric Mobility Shares: Ola Electric Mobility shares have suffered another big blow. Foreign brokerage firm Goldman Sachs has reduced the rating of the company’s shares. Its target price has been reduced by 50%. The brokerage has given ‘neutral’ rating to Ola Electric. Its target price has been reduced from 52 to 26. This new target price is around Wednesday’s closing price.

Revenue estimate cut

Goldman Sachs has also reduced its revenue estimates for fiscal years 2026 to 2028. The brokerage now expects the company’s market share to remain in the mid-single digits till 2030 and beyond. Earlier, it had expected it to be in the low teens. This means that the outlook for the company’s growth prospects has become quite weak.

Cash burn and need to raise funds

The brokerage says that considering the current EBITDA loss and Capex pace, the company’s cash burn will remain high. In such a situation, the company may need to raise new funding in the next 12 to 18 months.

Necessary steps for turnaround

According to Goldman Sachs, the company will have to take several important steps to improve the direction of its business. First, the service network will have to be made stable and reliable. Second, a strong and permanent senior leadership team will have to be formed in different segments. Third, product quality and reliability will need to be improved in the coming new product launch cycles.

Not a single ‘buy’ rating

Currently a total of eight analysts are covering shares of Ola Electric Mobility. None of these analysts have given a ‘buy’ rating to the stock. Two analysts have advised to ‘hold’, while six have advised to ‘sell’. Kotak Institutional Equities and MK Global have given a minimum price target of Rs 20 to the stock.

share status

Shares of Ola Electric had reached a high of Rs 157 at the time of listing, but have fallen by about 84% since then. It is now down about 66% from its IPO price of Rs.76. The market cap of the company has declined from Rs 65,000 crore at its peak to Rs 11,269 crore. Shares of Ola Electric closed 1.91% higher at Rs 25.62 on Wednesday. However, the stock has fallen by 32% so far this year.