Ola Electric Mobility Ltd shares on Monday staged a strong rebound from intraday low levels and settled in the green. The stock fell 3.03 per cent in early trade to hit an intraday low of Rs 70.54. As the session progressed, it recovered 9.99 per cent from the day's low level and touched a high value of Rs 77.59. The scrip eventually closed 2.20 per cent higher at Rs 74.34 as against its previous close of Rs 72.74.
However, Ola Electric's share price has more than halved (52.81 per cent) from its all-time high of Rs 157.53 due to several service-related issues.
On the earnings front, the electric vehicle (EV) maker said it has narrowed year-on-year (YoY) net loss to Rs 495 crore for the quarter ended September 2024 (Q2 FY25) from Rs 524 crore in the year-ago period. On the other hand, revenue from operations climbed 39 per cent (YoY) to Rs 1,214 crore in Q2 FY25.
During the quarter review, EBITDA (earnings before interest, taxes, depreciation and amortisation) losses were at Rs 223 crore compared to Rs 321 crore in the same period last year.
Ola Electric's chairman and managing director Bhavish Aggarwal, in an earnings call, said, "We are building 3-Wheelers. The beauty is that it shares the same platform as our S1 in terms of electronics, battery architecture, powertrain, only the mechanicals are different. So, you see the 3-Wheelers product road map also in that chart."
Net-net, very strong product line up over the next two years, almost (+20) products to be coming over the next two year, Aggarwal added.
In terms of sales network growth, he said, "Over the last quarter or so, especially in Q2, we had a bit of a capacity challenge in service. Our sales have expanded much faster than we had expanded our service network. But I would like to inform everybody that almost all of the backlog that was there because of the capacity issue has been solved now. And we have added capacity also as well as we have as one-time solved almost all of the backlog more than 90-95 per cent."
Technically, support on the counter could be seen at Rs 70. With that being said, resistance may be found in the Rs 78-85 range.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock may gain traction only after an authoritative breach of the Rs 85-90 zone. Caution is warranted in the counter with a sideways to negative view for the time period."
Kushal Gandhi, Technical Analyst at StoxBox, said, "There is currently insufficient price action evidence to confirm a potential technical rebound. Therefore, we advise against attempting to 'catch a falling knife' and recommend waiting for a clearer signal, which is a decisive closing above the crucial resistance level of Rs 85."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be Rs 70 and resistance Rs 80. A decisive move above Rs 80 level may trigger a further upside towards Rs 85. The expected trading range will be between Rs 70 and Rs 85 for the short term."
Sebi-registered research analyst AR Ramachandran said, "Ola Electric is bearish but also oversold on daily charts with immediate support at Rs 70. Investors should buy only if a daily close is above resistance of Rs 78.25 for an expected target of Rs 100 in the near term."
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.