Despite just seven trading sessions, excluding market holidays, Ola Electric’s stock has shown over 100% growth to cross INR 150 per share today.
On Tuesday, (August 20), the shares reached a new intraday high of INR 157.53, up 15.2% from its previous close at INR 146.03. This also marked a new all-time high share price for the company.
However, the shares pared gains to trade at INR 135.93 at 11.44 AM, a 6.9% dip from its last closing price.
Continuing its bull run since debuting on August 9, shares of Ola Electric
have doubled from their listing price of INR 75.99.
Despite just seven trading sessions, excluding market holidays, Ola Electric’s stock has shown over 100% growth to cross INR 150 per share today.
On Tuesday, (August 20), the shares reached a new intraday high of INR 157.53, up 15.2% from its previous close at INR 146.03. This also marked a new all-time high share price for the company.
However, the shares pared gains to trade at INR 135.93 at 11.44 AM, a 6.9% dip from its last closing price.
With this performance, Ola Electric’s market capitalisation was at INR 60.8K Cr at the above given time (11.44 AM).
The stocks have maintained a bull run since Friday last week, when it hit a 20% upper circuit after the electric mobility startup forayed into 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.
Outlining the stance on Ola Electric, Geojit Financial Services’s Senior Research analyst Saji John said, “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. Meanwhile, at their annual ‘Sankalp’ event, the company introduced four new motorcycles across various price ranges.”
“While motorcycles dominate the broader two-wheeler market in India, their share in the EV segment is currently just 1%, offering significant growth potential for the company. The launch is expected to positively impact as the company benefits from a first-mover advantage in the electric motorcycle segment. and the potential for increased market penetration, Ola is likely to see enhanced revenue visibility over the long term. This strategic move could further strengthen its position in the EV market, contributing to sustained growth in its share price.”
