Multibagger stock: Olectra Greentech shares turn weak in short term, can they reclaim Rs 2,200 mark?

Shares of Olectra Greentech Ltd have delivered multibagger returns in the long term. The stock rose 182% in two years and gained 207% in three years. It rose a stellar 815% in five years, delivering multibagger returns for long term investors. However, the stock has seen correction in the short term, falling 6%, 3.22% and 1.61% in six months,three months and a month. 

Olectra Greentech shares climbed 4.33% to Rs 1717 today against the previous close of Rs 1645.30 on BSE. Olectra Greentech Ltd stock opened higher at Rs 1655.05 today. Total 0.84 lakh shares of the firm changed hands amounting to a turnover of Rs 14.01 crore. Market cap of the firm rose to Rs 13,722 crore on BSE.  

The stock hit a record high of Rs 2,222 on February 22, 2024  and fell to a 52 week low of Rs 1017.60 on October 26, 2023. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 47.2, signaling the stock is trading neither in the oversold nor in the overbought zone. Olectra has a one-year beta of 1.1, indicating low volatility on the counter. The stock is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages. 

JM Financial has a buy call on the stock with a price target of Rs 2200. "It has been establishing greenfield State-of-the-Art plant in Hyderabad with capacity of 5,000 units/year and scalable to 10,000 units/year. Partial operations have commenced for manufacturing electric buses and other EV products in the new plant. Over the next 2 fiscals ramp up will be visible. Olectra’s collaboration with BYD, a growing market for electric buses, and a strong order book provide growth potential," said the brokerage. 

SBI Securities is bullish on the stock in the short term with a price target of Rs 1,972.3. The brokerage called for accumulating the midcap stock in the range of Rs 1,697-1,732.2. It is positive on a number of aspects such as the company's recent financial performance, growth prospects, order book, policy support, and overall corporate governance. 

Olectra Greentech reported a 156 per cent rise in net profit for the September 2024 quarter at Rs 47.7 crore compared to Rs 18.6 crore in the same period a year ago. Revenue climbed 70.5% to Rs 523.7 crore in Q2 against Rs 307.2 crore in the September 2023 quarter.  

EBITDA in Q2 climbed to Rs 81.2 crore against Rs 40.6 crore in the September quarter of the previous fiscal. 

Olectra Greentech was established in 2000 and pioneered the introduction of electric buses in India in 2015. It is also the largest manufacturer in India of silicone rubber/composite insulators for power transmission and distribution networks.