Ola Electric shares surged 10% to hit upper circuit level; here's what analysts say

Shares of Ola Electric Mobility Ltd logged a decent uptick on Tuesday, snapping their four-day fall. The stock jumped 10 per cent to hit its upper price band of Rs 118.40. It eventually settled 9.71 per cent higher at Rs 118.10. At this price, the scrip has gained 55.40 per cent from its initial public offering (IPO) price of Rs 76. Despite the mentioned rise, it has slipped 25.03 per cent compared to its record high value of Rs 157.53, a level seen on August 20 last month.

Global brokerages Goldman Sachs and BofA Securities have reportedly initiated coverage on Ola Electric with a 'Buy' rating. Goldman sees Ola Electric shares at Rs 160 while BofA Securities gave a target price of Rs 145.

Separately, a few analysts also remained positive on the counter with a long-term view. Market participants with a high-risk appetite can continue to hold it and consider adding on dips, one of them suggested.

"There are only four major players of significance who are going to be ruling this roost of the EV space. With FAME-III coming back, the momentum for conversions or buyers of EV two-wheelers will go up. Four players who feature out here are TVS, Bajaj, Ola Electric and Hero. All of these have sizeable market share gains. So, it will be a large market for these four players. 30 per cent penetration in a 2 crore annual sales in the next six years would mean that you will be looking at a market of about 60 lakh vehicles. This is going to be big with each one garnering a 15 per cent share with a very high realisation value. Growth is there and margins will come in. And, if they get to steady state margins then the stock will start climbing further. I think Ola Electric is a 'Buy' on this trait," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today TV.

"Investors with a high-risk appetite can continue to hold the stock and consider adding it on dips," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Ola Electric shares have the potential to hit Rs 125 level in the near term, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Keep a strict stop loss placed at Rs 105 for this trade, Singh added.

The stock saw heavy trading volume today as around 1.86 crore changed hands on BSE. The figure was higher than the two-week average volume of 45.88 lakh shares. Turnover on the counter came at Rs 214.65 crore, commanding a market capitalisation (m-cap) of Rs 52,091.90 crore.

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.