Ola Electric's stock price surged by 10%, reaching its upper price limit of ₹118.40 during the trading session. By the end of the day, the stock settled at ₹118.10, marking a 9.71% increase. Shares of Ola Electric Mobility Ltd saw a notable rise on Tuesday, breaking a four-day losing streak. The stock surged 10%, reaching its upper price limit of ₹118.40 before settling 9.71% higher at ₹118.10. This represents a 55.40% gain from its initial public offering (IPO) price of ₹76. However, despite the recent increase, the stock remains 25.03% below its record high of ₹157.53, which was achieved on August 20 of the previous month.
Global brokerages Goldman Sachs and BofA Securities have reportedly initiated coverage on Ola Electric, both giving the stock a 'Buy' rating. Goldman Sachs set a target price of ₹160, while BofA Securities projected ₹145. Analysts have also expressed optimism about the stock’s long-term potential, advising high-risk investors to hold and consider buying more during dips.
Vinit Bolinjkar, Head of Research at Ventura Securities, noted the significance of Ola Electric in the electric vehicle (EV) sector, along with competitors like TVS, Bajaj, and Hero, citing the market's strong growth potential, especially with the FAME-III policy in play. He estimated that 30% EV penetration in a 2-crore annual sales market could lead to about 60 lakh vehicles over the next six years, with Ola securing a 15% market share.
Ravi Singh, Senior VP at Religare Broking, mentioned that Ola Electric shares could soon hit ₹125, with a recommended stop loss at ₹105.
On the trading front, the stock saw heavy volumes, with 1.86 crore shares traded on the BSE, significantly higher than the two-week average of 45.88 lakh shares, leading to a turnover of ₹214.65 crore. Ola Electric’s market cap now stands at ₹52,091.90 crore.
Despite a widening net loss of ₹347 crore in Q1 FY25 compared to ₹267 crore a year earlier, Ola Electric, founded in 2017, remains a key player in the EV space, producing electric vehicles and core components such as battery packs and motors. As of August 2024, promoters held a 36.78% stake in the company.
