Shares of Ola Electric Mobility Ltd continued to hog the spotlight during Monday's trading session after the company hit another upper circuit for the day amid fresh buying interest post their Dalal Street debut on August 9.
Ola Electric's stock was locked in the upper circuit limit of 10 per cent to 146.03 on Monday, commanding a total market capitalization of more than 64,400 crore. The scrip had settled at Rs 123.76 in the previous trading session on Friday.
Ola's stock performance Shares of Ola Electric Mobility have soared 92 per cent in just 6 sessions, counted from August 9, Friday, when the stock was listed at the bourses. The stock was listed on a flat note, at Rs 76, the issue price itself. The stock has hit upper circuit in 4 sessions out of six since its Dalal Street debut.
Q1 results of Ola Electric Ola Electric reported a consolidated net loss of Rs 347 crore for the quarter ended June 30, 2024, widening nearly 30 per cent on a year-on-year (YoY) basis from Rs 267 crore in the year ago period. The EV two-wheeler maker's revenue from operations rose 32.3 per cent YoY to for the quarter stood at Rs 1,644 crore. Ebitda loss came at Rs 205 crore for the reported quarter.
Analysts views on Ola Electric HSBC recently initiated coverage on Ola Electric post its Q1 results and concall. The global brokerage firm gave a thumbs up on the listed automobile maker with 'buy' call post debut as it believes that EV manufacturing costs may fall significantly by FY27/28, while internal combustion engine (ICE) scooters may go up due to emission standards.
However, it said that the barrier to e2-wheelers switching may fall but Ola's battery venture may be a success. It sees Ola Electric as an opportunity to buy given the sustained regulatory support citing reduction in cost and positive risk-reward for the battery venture. However, slow penetration of e2-wheelers and battery plant issues are the key challenges. HSBC has a target price of Rs 140, which has already been met.
Nomura said that Motorcycles have been a tougher segment for electrification and the last few launches including Tork, Revolt, Ultraviolette and more have not been successful. However, it estimates 25 per cent on EVs in two-wheelers by FY30. "With multiple price points and range options from Ola, it would be interesting to watch how customers respond to them."
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