Shares of two-wheeler electric startup Ola Electric jumped 4.4% to touch an intraday high at INR 143.8 today (August 21), reversing the 6% correction it witnessed during Tuesday’s trading session.
On Wednesday, the shares opened at INR 142 but later pared gains, trading at INR 137.94 by 12:08 AM, slightly higher than the previous close.
Yesterday (August 20), Ola Electric’s shares saw its first significant drop after a bull run since listing last week. During this rally, the share price doubled from the listing price of INR 75.99.
Shares of two-wheeler electric startup Ola Electric
jumped 4.4% to touch an intraday high at INR 143.8 today (August 21), reversing the 6% correction it witnessed during Tuesday’s trading session.
On Wednesday, the shares opened at INR 142 but later pared gains, trading at INR 137.94 by 12:08 AM, slightly higher than the previous close.
Yesterday (August 20), Ola Electric’s shares saw its first significant drop after a bull run since listing last week. During this rally, the share price doubled from the listing price of INR 75.99.
However, on the same day, the company’s shares reached an all-time high of INR 157.53.
This development follows Ola Electric receiving Domestic Value Addition (DVA) certification for its S1 X e-scooter model (both 3 kWh and 4 kWh).
DVA certification is required to be eligible for the production linked incentive (PLI) scheme for automobiles and auto components.
Investment experts have cautioned investors, especially given the company’s ongoing losses and the high volatility in its stock price.
“While the long-term potential of Ola Electric, especially given the EV market’s favorable outlook, might be appealing, the current valuation appears to be quite speculative. Investors should be cautious, especially given the company’s ongoing losses and the high volatility in its stock price. For new investors, it may be wise to wait for a more stable entry point or consider the stock as a long-term play with a high risk-reward ratio,” Geojit Financial Services’s Senior Research analyst Saji John said.
Last Friday, the shares hit a 20% upper circuit after the electric mobility startup entered the e-bike segment with the launch of its Roadster Series electric motorcycles.
On the eve of Independence Day Ola held an event called Ola Sankalp 2024 where the founder Bhavish Aggarwal unveiled three e-bikes – Roadster X, Roadster and Roadster Pro. He also outlined that Ola Electric scooters will now be equipped with AI virtual assistant Krutrim.
It is pertinent to note that Ola Electric was listed on Dalal Street earlier this month on August 9. The stock debuted at INR 75.99 per share as against the issue price of INR 76.
Notably, global brokerage HSBC has tagged a “BUY” rating on the stock with a price target of INR 140 per share.
On the financial front, Ola Electric saw its net loss widening to INR 347 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), up 30% year-on-year. However, revenue from operations jumped 30% YoY to INR 1,644 Cr during the reporting period.
