Olectra Greentech shares snap 3-day fall, jump 6% today; here's why

Shares of Olectra Greentech Ltd logged a sharp uptick in Tuesday's trade. The stock surged 6.46 per cent to hit a day high of Rs 1,662.65. It was last seen trading 5.87 per cent up at Rs 1,653.50. At this price, the scrip has slipped 11.55 per cent in the past six months but has climbed 20.23 per cent on a year-to-date (YTD) basis.

Today's sharp upward move in the share price came after it was reported that the electric vehicle (EV) manufacturer "emerged as the lowest bidder for the supply of 327 electric buses to the Himachal Pradesh Road Transport Corporation (HRTC)."

BSE has sought clarification from the EV maker over the report. "The exchange has sought clarification from Olectra Greentech Ltd on October 8, 2024, with reference to news, dated October 8, 2024, quoting "EV manufacturer Olectra Greentech, the listed entity that is part of the Megha Engineering & Infrastructures Ltd (MEIL) group, has emerged as the lowest bidder for the supply of 327 electric buses to the Himachal Pradesh Road Transport Corporation (HRTC)," it stated.

Technically, HDFC Securities has suggested a 'Buy' call for Olectra with a potential upside target of Rs 1,830. "The short-term trend seems to have turned positive. Keep stop loss placed at Rs 1,653, it added.

The scrip traded lower than the 5-day, 10-, 100-, 150-day and 200-day simple moving averages (SMAs) but higher than the 20-day, 30-day and 50-day SMAs. The stock's 14-day relative strength index (RSI) came at 50.62. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the carrier's stock has a price-to-equity (P/E) ratio of 169.37 against a price-to-book (P/B) value of 13.95. Earnings per share (EPS) stood at 9.22 with a return on equity (RoE) of 8.23.

Around 78,000 shares changed hands on BSE at the time of writing this story. The figure was lower than the two-week average volume of 92,000 shares. Turnover on the counter came at Rs 12.57 crore, commanding a market capitalisation (m-cap) of Rs 13,526.91 crore.

Olectra is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL) and manufactures electric buses in India. It is also the country's largest silicone rubber/composite insulators manufacturer for power transmission and distribution networks.