Ola Electric Mobility Ltd shares logged a sharp cut on Tuesday, extending their fall for the second straight session. The scrip plunged 8.56 per cent to hit a record low of Rs 73.70. At this price, it has crashed 53.22 per cent from its all-time high value of Rs 157.53, a level seen on August 20, 2024.
The company today informed exchanges that it will declare the September 2024 quarter (Q2 FY25) results on November 8 (Friday). "We wish to inform you that a meeting of the Board of Directors of Ola Electric Mobility Ltd is scheduled to be held on Friday, November 8, 2024, inter alia, to consider and approve the unaudited standalone and consolidated financial results of the company for the quarter and half year ended September 30, 2024, along with the Limited Review Report of the Auditors thereon," it stated.
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, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
The Bhavish Aggarwal-led company has been facing several service-related issues. And, 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).
"The stock will continue to remain weak on a medium- to short-term perspective. "Investors with a high-risk appetite can consider holding on to the stock. One can look to enter at lower levels but only with a long-term view," Bathini stated.
Technically, the counter looked 'weak' on daily charts. An analyst suggested that the stock is in a 'no-trade' zone.
"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.
"Ola Electric is bearish but also oversold on daily charts with next support at Rs 59.4. Investors should buy only if a daily close is above resistance of Rs 80.3 for a target of Rs 100 in the near term," said Sebi-registered research analyst AR Ramachandran.
"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.
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.