Shares of Ola Electric Mobility Ltd returned to positive territory in Monday's fag-end trade. During early deals today, the stock slipped 5.61 per cent to hit a day low of Rs 103.50. It later staged a sharp recovery by rising 12.08 per cent to touch a day-high value of Rs 116.
Ola Electric's one-month lock-in period ended today as the stock was listed on the bourses on August 9. The lock-in period for anchor investors in an initial public offering (IPO) is 30 days for 50 per cent of allotted shares and 90 days for the remaining 50 per cent. The anchor portion, as of August 1, for Ola Electric was worth Rs 2,763.03 crore.
Analysts largely suggested investors to 'avoid' the stock for the short term. "One should avoid this bounce as it could be drab for short-term traders," market expert Kush Ghodasara told Business Today TV.
"If you live in the FOMO (fear of missing out) factor, please don't jump into the stock. At Rs 76 (issue price), we have given a 'Subscribe' recommendation with a long-term view. After hitting a record high of Rs 157.53, the counter started correcting because there was too much hype. The company has a significant loss on its balance sheet, which will take a long time to come into black and then into blue and green," said Gaurang Shah, Senior VP at Geojit Financial.
In a nutshell, the market veteran underscored that investors with a high-risk appetite and long-term view could consider investing in Ola.
On technical setup, support on the counter could be seen at Rs 100. "After a stellar run-up despite a consistently negative bottomline and high debt, not surprisingly, Ola Electric Mobility looked very overvalued and bearish at current price levels with strong support now at Rs 100. A daily close below this support could lead to a target of Rs 76 in the near term. Strong resistance will be at Rs 120," said Sebi-registered research analyst AR Ramachandran.
"The stock looked weak on daily charts and can slip towards Rs 100 level. So, one should not buy at current levels," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
The scrip saw heavy trading volume today as around 78.97 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 45.36 lakh shares. Turnover on the counter came at Rs 86.33 crore, commanding a market capitalisation (m-cap) of Rs 50,923.03 crore.
The company's consolidated net loss widened to Rs 347 crore in the April-June quarter (Q1 FY25) from Rs 267 crore in the year-ago quarter.
Founded in 2017, Ola Electric 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.