Olectra Greentech shares continue to fall: What investors should know after clarification

Shares of Olectra Greentech Ltd continued their downward move for the second consecutive session on Wednesday, falling 1.62 per cent to touch a day's low of Rs 1,237.65. The stock has declined by 8.01 per cent over the past two trading days, following news of the cancellation of a major electric bus order by the Maharashtra government.

The company had earlier clarified that a Letter of Intent (LoI) was awarded to a consortium of Olectra Greentech and EVEY Trans Pvt Ltd for the supply, operation, and maintenance of 5,150 electric buses, including supporting electrical and civil infrastructure, under a Gross Cost Contract (GCC) model.

"We would like to bring your kind notice that, consortium of Olectra Greentech Ltd (Olectra) and EVEY Trans Pvt Ltd (EVEY) had been awarded with Letter of Intent from Maharashtra State Road Transport Corporation (MSRTC) relating to supply, operation and maintenance of 5,150 electric buses and allied electrical and civil infrastructures on gross cost contract (GCC) basis. In this regard, we had submitted the required disclosure vide our letter dated July 7, 2023, under Regulation 30 of Sebi (LODR) Regulations, 2015 about bagging of aforesaid order for 5,150 buses from MSRTC along with all required details," it stated.

It mentioned that EVEY Trans Pvt Ltd is executing this contract with MSRTC through its special purpose vehicle (SPV) -- namely EVEY Trans (MSR) Pvt Ltd -- where Olectra holds a 1 per cent stake and EVEY 99 per cent stake as a lead bidder. "In view of above, all the communications about this project shall be made between the SPV and MSRTC itself. At present the Contract execution is under process and as per the clarification provided by EVEY they haven’t received any such order as of now," the company added.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said investors with a long-term view can continue to hold on to the stock, given the kind of focus on the EV theme. Although, he underscored that it is suitable only for those with a high-risk appetite."

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said only a decisive breakthrough above the Rs 1,300-1,350 range could attract momentum in the stock. "The Rs 1,160-1,140 range is likely to provide support against any setbacks in the near term," Krishan added.

The scrip traded lower than the 5-day, 10-, 150-day and 200-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-day and 100-day SMAs. The stock's 14-day relative strength index (RSI) came at 51.21. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 80.18 against a price-to-book (P/B) value of 10.33. Earnings per share (EPS) stood at 15.46 with a return on equity (RoE) of 12.89. According to Trendlyne data, Olectra has a one-year beta of 1.5, indicating high volatility.

Olectra is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL), which manufactures electric buses in India. It is also the country's largest manufacturer of silicone rubber/composite insulators for power transmission and distribution networks. As of March 2025, promoters held a 50.02 per cent stake in the EV firm.