Ola Electric Mobility’s shares on Monday continued its upside movement with the shares surging 10 per cent in the opening trade to hit the upper circuit for the second day in a row. With this, the company’s shares have given over 90 per cent gains within 10 days since their IPO listing on August 9.
Shares of Ola Electric Mobility on Monday traded Rs 146.03 apiece on the BSE, 10 per cent higher as against the previous close of Rs 132.76.
“The Ola shares have given a very good appreciation to investors. But, in a market cap of Rs 64,000 crore for an EV company, where the penetration or overall market share is likely to be slow, investors can do momentum trading. Avoid investment bets. I think incumbents like TVS, Bajaj Auto provide more comfort as earning visibility is there apart from growth,” said Hemang Jani, an independent market expert.
Meanwhile, Ola Electric received its first ‘buy’ recommendation, with brokerage firm HSBC giving a price target of Rs 140.
HSBC said EV manufacturing costs may fall significantly by FY27/28, while internal combustion engine (ICE) scooters may go up due to emission standards. It added that the barrier to e2-wheelers switching may fall but Ola’s battery venture may be a success.
On August 14, Ola Electric Mobility also reported a higher consolidated loss of Rs 347 crore for the April-June quarter of 2024-25 compared to Rs 267 crore in the same period last year. Its revenue from operations for the quarter was Rs 1,644 crore against Rs 1,243 crore in the same quarter of the previous fiscal.
However, the company said its automotive segment (E2W) posted a strong improvement in EBITDA (earnings before interest, tax, depreciation and amortisation) margin and is close to EBITDA breakeven.
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