Ola Electric shares down 44% from record highs; should you buy, sell or hold?

Ola Electric Mobility Ltd shares extended their fall for the third straight session on Monday. The stock slipped 3.03 per cent to settle at Rs 87.46. At this price, it has slumped 44.48 per cent from its record high value of Rs 157.53, a level seen on August 20, 2024. Despite the mentioned drop, the scrip has climbed 15.07 per cent from its listing price of Rs 76.

According to the Vahan portal, the company has recorded 15,672 registrations this month (as of October 14) with a market share of 34 per cent. With that being said, the EV maker has been facing service-related issues. It was also asked to respond to a show cause notice regarding alleged violations of consumer rights, misleading advertisement and unfair trade practices.

Ola Electric, on its part, said the notice has no impact on financial, operational or other activities of the company for now.

High-risk taking investors can consider taking positions at current levels, a market expert said. Technically, support on the counter could be seen in the 86-80 range.

"At present, Ola Electric is coming to its listing price after touching a high of Rs 157. There has been outrage in social media for the last few weeks and the stock witnessed profit booking. Investors with a high-risk appetite and long-term view can buy this stock at the current price range," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Investors can consider buying Ola Electric shares around Rs 85 level for an upside target of Rs 95. Keep a strict stop loss placed at Rs 80 for this trade," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Support will be Rs 86 and resistance Rs 90. A decisive close above Rs 90 level may trigger a further upside towards Rs 105. The expected trading range will be between Rs 80 Rs 110 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"Ola Electric stock price is bearish on daily charts with strong resistance at Rs 100. A daily close below support of 86 could lead to a downward target of Rs 76 in the near term," said Sebi-registered research analyst AR Ramachandran.

The company's consolidated net loss widened to Rs 347 crore in the April-June quarter (Q1 FY25) from Rs 267 crore in the year-ago quarter.

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 August 8, 2024, promoters held a 36.78 per cent stake in the E2W player.