Ola Electric shares dive 8% to hit all-time low; here's what analysts have to say

Ola Electric Mobility Ltd shares logged a sharp fall in Monday's trade after its creditor Rosmerta Digital Services filed an insolvency petition against the pure-play electric vehicle (EV). "We wish to inform you that a petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Rosmerta Digital Services Ltd, an Operational Creditor of Ola Electric Technologies Pvt Ltd, a wholly owned subsidiary of Ola Electric Mobility Ltd. The petition has been submitted before the National Company Law Tribunal – Bengaluru Bench (NCLT, Bengaluru), alleging to default in payment towards the services rendered by the Operational Creditor and seeking initiation of the Corporate Insolvency Resolution Process ("CIRP") against the Ola Electric Technologies Pvt Ltd," the Bhavish Agrawal-led company informed exchanges over the weekend.

"The company has sought appropriate legal advice and it strongly disputes the claims made. It will take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter," Ola Electric also said.

Today, Ola Electric's stock plunged 8.19 per cent to hit a record low of Rs 46.40. It was last seen trading 7.70 per cent down at Rs 46.65. At this price, the scrip has crashed 45.90 per cent in 2025 so far.

A few analysts suggested that the counter may remain 'weak'. "The company needs to get its sales volume back. If it doesn't regain its sales volume at this juncture when the entire EV space is about to pick up, then there is a serious flaw with the acceptability of its products. Ola Electric has launched vehicles in most segments and despite that volume stability is not there. So, I expect the negativity will remain," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today.

"I won't advise taking any contra bet at current levels. It is better to stay away from the stock for the time being unless there is a trend reversal formation. The counter is in a kind of freefall zone," said Nilesh Jain, VP - Derivative and Technical Research at Centrum Broking.

"The counter has been in a downward trend and traded in the oversold category on daily charts. We will wait for a trend reversal," said Vaishali Parekh, Vice-President (Technical Research) at Prabhudas Lilladher.

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 41.57. 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.