Shares of Ola Electric Mobility Ltd extended their sharp fall for the fifth straight session in Monday's trade. The stock took another round of beating today and slumped 6.05 per cent to hit a low of Rs 118.57. At this price, it has declined 24.73 per cent from its recent all-time high value of Rs 157.53, a level seen last week on August 20.
Despite the mentioned drop, the recently-listed counter has gained 56.01 per cent from its initial public offering (IPO) price of Rs 76. The stock made a muted market debut on August 9 but saw a strong buying interest post-listing. At present, the scrip has been under selling pressure after scaling its lifetime high levels.
Bourses BSE and NSE have put the securities of Ola Electric under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Some analysts suggested that the counter can be a further correction. "Valuations are no longer cheap. It still needs to correct," one of them stated.
"Rs 105-108 levels could be a good level to enter into the stock from a medium-term view. The stock has appreciated handsomely but overdone it on the upside. Rs 145 was a three-year target which it did in eight days. This does not include the battery segment as we've not factored in. I think Rs 105-108 will be a good price to enter for a 40-50 per cent upside in a couple of years," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today TV.
"Valuations are no longer cheap for Ola Electric. It still needs to correct," said Mayuresh Joshi, Head-Equity Research at William O'Neil India. Though I love their bike but I don't love their stock at the current market price, he quipped.
"Investors with a high-risk appetite and long-term horizon can add this stock. For those who invested for listing gains can take some profit off the table," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Technically, the stock is not looking good on charts and can slip towards Rs 110 level over the near term, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Investors should wait to buy the dip, Singh added.
The company said its consolidated net loss widened to Rs 347 crore in the April-June quarter (Q1 FY25) from Rs 267 crore in the year-ago quarter.
Ola Electric was founded in 2017. It is a pure-play electric vehicle player that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
As of August 8, 2024, promoters held a 36.78 per cent stake in the E2W player.