Shares of Ola Electric Mobility Ltd have more than halved from their all-time high levels. The stock on Monday settled 0.45 per cent higher at Rs 77.67. At this closing price, it has cracked 50.70 per cent from a record high value of Rs 157.53, touched on August 20, 2024.
The Centre has intensified its scrutiny of Ola Electric's handling of consumer complaints, following a showcause notice issued by the Central Consumer Protection Authority (CCPA). This examination includes plans to conduct independent sampling to determine the validity of Ola Electric's claim that it has resolved 99% of customer complaints, sources told Business Today TV.
"We want to be sure if Ola Electric's claim of resolving 99 per cent problems is true," one of the sources said. Last week, the Bhavish Aggarwal-led company said that it has resolved 99.1 per cent of complaints to customers' satisfaction. The electric two-wheeler maker has been facing several service-related issues.
In a separate development, the pureplay EV firm has introduced its Ola Digital Twin Platform integrated with NVIDIA Omniverse. Using the platform, Ola Electric said it achieved over 20 per cent faster time to market from design to commissioning, for manufacturing operations at its Futurefactory.
"Investors with a high-risk appetite can hold on to the stock. One can also consider entering at current levels but only with a long-term view," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
The market expert mentioned that the company's September quarter earnings will be closely watched. "Ola Electric has gained the market share but breakeven and profitability are the key parameters that will be closely watched after the recent uproar on social media over service-related issues. The stock will continue to remain weak on a medium- to short-term perspective," Bathini stated.
"Technically, The stock is in a weak position and remains in a 'no-trade' zone. Investors are advised to stay away until a clearer trend emerges," said Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox.
"Ola Electric shares looked weak on charts. The stock can slip towards the Rs 70-mark," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
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 September 2024, promoters held a 36.78 per cent stake in the E2W player.