Ola Electric Shares Surge 3.7% Amid Broader Market Crash
by Bhupendra Paintola · Inc42SUMMARY
- However, the stock pared some gains afterwards to trade at INR 102.85 at 2:14 PM, up 3.15% from the previous close
- Till 2:14 PM, Ola Electric's market capitalisation stood at INR 45,343.33 Cr (around $ ) and as much as 5.27 Cr shares traded hands on the bourses
- Yesterday (September 30), the Indian benchmark indices incurred the biggest single-day slump in nearly two months after a major selloff by a slew of foreign portfolio investors (FPI)
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Shares of emobility major Ola Electric surged as much as 3.7% to INR 103.45 during the intraday trading session on the BSE today (October 1).
However, the stock pared some gains afterwards to trade at INR 102.85 at 2:14 PM, up 3.15% from the previous close.
Till 2:14 PM, Ola Electric’s market capitalisation stood at INR 45,343.33 Cr (around $ 5.4 Bn) and as much as 5.27 Cr shares traded hands on the bourses.
Yesterday (September 30), the Indian benchmark indices incurred the biggest single-day slump in nearly two months after a major selloff by a slew of foreign portfolio investors (FPI).
Even today, the sensex was below 34.63 points till the time of filing this article.
The stock has given fair returns of over 31% to its investors since its muted stock debuted at INR 75.99 on August 9, 2024.
However, the stock lost its momentum after doubling its listing price within just seven trading sessions since its listing.
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As a result, 12 out of the last 14 trading sessions of the startup ended in the red.
This comes close on the heels of Ola Electric’s escooter registrations dropping 11% month-on-month (MoM) to 23,965 units in September, marking its lowest monthly vehicle sales since October last year.
The startup has consecutively lost its market share in EV two-wheeler segment, from a little over 30% market share in August, the EV startup’s share fell to 27% in September.
The development also comes a few days after Ola Electric’s S1 X 2kWh scooter obtained the Certification for Compliance for the PLI Scheme of automobile and auto components.
It is pertinent to note that brokerage firm Goldman Sachs initiated coverage on Ola Electric with a ‘buy’ rating and a price target of INR 160 apiece.
Goldman Sachs expects Ola Electric’s revenue to grow 2.5X faster and its volumes to increase 5X faster than its peers in the Indian electric two-wheeler market. The brokerage also expects the startup to achieve EBITDA breakeven by the end of FY27.
Ola Electric has also been tagged with a ‘buy’ rating by BofA Securities.
On the financial front, Ola Electric managed to trim its consolidated net loss by 30% to INR 347 Cr in Q1 FY25 from INR 267 Cr in the year-ago period. However, its operating revenue rose 32% year-on-year to INR 1,644 Cr in the reported quarter.