Shares of Ola Electric Mobility Ltd extended their fall for the third straight session, slipping 4.41 per cent to settle at Rs 51.76 on Wednesday. At this closing value, the stock has cracked 49.99 per cent in the last six months.
The pure-play EV firm recently said Rosmerta Group has filed a memo for withdrawal of petitions filed before the National Company Law Tribunal (NCLT), Bengaluru, as it has amicably settled all outstanding dues between its wholly-owned subsidiary, Ola Electric Technologies Pvt Ltd, and the Rosmerta Group.
The Bhavish Aggarwal-led company said the matter with Rosmerta now stands fully resolved, adding that it remained committed to fulfilling its obligations and maintaining professional relationships with all stakeholders. Rosmerta also mentioned that no further causes of action exist between Rosmerta Group and Ola Electric, whose relationship will now be governed by the settlement agreement executed between them.
A market expert said Ola Electric's stock is only for high-risk-taking investors while another suggested that anyone considering entering it should keep a stop loss of Rs 48.
"The stock has corrected from Rs 100 level to around Rs 50. It is highly volatile and suitable only for high-risk appetite investors. We need to see how the company is taking care of the customer issues and concerns over sales figures. The EV firm is also going to launch its battery in April. One has to monitor how this will impact the company's margins," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"Those who are struck at Rs 100-plus level, don't average the stock at this point. Putting your money somewhere else could help you to generate a good alpha. Technically, it could be a good buy at current levels but only for a short-term view. One can consider buying it with a stop loss of Rs 48. Just play the stock only for a short bounce and get out. I don't think that the stock will move above Rs 65 levels in the next three months. If you are struct at higher levels, just the investment be. Whenever your price comes in, let's say in the next 1 or 2 years, you exit it but do not average this stock. I don't see any significant upside above Rs 65-70 levels. Those looking to exit should do it in a partial way, keeping a trailing stop loss," said Sebi-registered analyst Mitesh Panchal.
The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 63.21. A level below 30 is defined as oversold while a value above 70 is considered overbought.
Founded in 2017, Ola Electric primarily manufactures EVs and certain core components such as battery packs, motors and vehicle frames at the Ola Futurefactory. As of December 2024, promoters held a 36.78 per cent stake in the E2W player.