As many as 244.7 Cr shares of Ola Electric traded hands today. The company’s market capitalisation stood at INR 38,885.88 Cr ($4.6 Bn) at the end of the session today
The sharp rise came a day after Citi initiated coverage on the stock with a ‘Buy’ rating, citing its dominance in the EV segment and attractive long-term prospects
In its research report, Citi said it has a price target of INR 90 for Ola Electric, an upside of 22.49% from the stock’s closing price of INR 73.47 yesterday
Update | November 27, 4:15 PM
Shares of electric vehicle (EV) manufacturer Ola Electric
surged 19.99% to hit the upper circuit at INR 88.16 on Wednesday (November 27).
As many as 244.7 Cr shares of Ola Electric traded hands today. The company’s market capitalisation stood at INR 38,885.88 Cr ($4.6 Bn) at the end of the session today.
The sharp rise came a day after Citi initiated coverage on the stock with a ‘Buy’ rating, citing its dominance in the EV segment and attractive long-term prospects.
In its research report, Citi said it has a price target of INR 90 for Ola Electric, an upside of 22.49% from the stock’s closing price of INR 73.47 yesterday.
The brokerage firm attributed factors like a wide product portfolio, strong R&D focus, significant vertical integration (including Li-ion cell manufacturing), and large scale of production behind its positive stance on Ola Electric.
It said Ola Electric is the largest E2W player in India with around 38% market share, and added that the company’s soon-to-be-launched motorcycles and electric three-wheelers can be potential volume boosters.
Acknowledging the challenges faced by the company in recent times, it said, “We admit service perception has been negative of late but expect it to subside over the medium term as the back-end supply chain catches up with volume growth.”
Citi pointed out overall weak EV penetration, elevated competition, continued negative perception of product/service quality, technology obsolescence, and sustained net losses as the key risk factors.On Tuesday, Ola Electric also announced the launch of new electric scooters to cater to gig economy workers and cost-conscious consumers.
Original Story | November 27, 10:57 AM
Shares of Ola Electric surged as high as 9.4% at INR 80.40 during intraday trading on the BSE today (November 27), a day after it unveiled electric scooters to cater to gig economy workers and cost-conscious consumers.
The shares opened today’s trade 5.7% higher at INR 77.71 against the previous close of INR 73.47.
At 10:28 AM, the stock was hovering at almost the same price at INR 78.90. So far for the day, the stock has traded in the price range of INR 75.20 – INR 80.40.
As many as 60 Cr shares of Ola Electric changed hands by 10:28 AM, while the company’s market capitalisation remained at INR 34,849 Cr by then.
It is pertinent to note that Ola Electric has ended its last four trading sessions in the green.
Since its listing on August 9 on the bourses, the company’s shares are trading 3.32% below its listing price of INR 76 on BSE.
The stock surge follows the launch of Ola Electric’s electric scooters, S1 Z and Gig, cater to gig economy workers and cost-conscious consumers.
Earlier this month, Ola Electric reported its Q2 FY25 resultswhere it trimmed its consolidated net loss to INR 495 Cr from INR 524 Cr in the year-ago period.
However, the loss widened by 43% compared to INR 347 Cr posted in Q1 FY25, amid declining EV sales.
The company’s operating revenue rose 39% to INR 1,214 Cr in Q2 FY25 from INR 873 Cr in Q2 FY24, though it fell 26.1% quarter-on-quarter.
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