Shares of Ola Electric Mobility Ltd continued to extend their gains to the tune of another 8 per cent on Tuesday as the recently listed counter turned multibagger during the session, doubling investors money in just seven trading sessions. The stock has hit upper circuit in 4 sessions out of seven post its listing.
Shares of Ola Electric rose 8.55 per cent during the trading session on Tuesday, commanding a total market capitalization close to Rs 69,500 crore. The scrip had settled at Rs 146.03 in the previous trading session on Monday, hitting an upper circuit of 10 per cent for the day.
Shares of Ola Electric Mobility have soared more than 107 per cent in just 7 sessions, counted from August 9, Friday, when the stock was listed at the bourses. The stock was listed on a flat note, at Rs 76, the issue price itself. The stock has more than doubled investors’ wealth since its debut.
Ola Electric reported a consolidated net loss of Rs 347 crore for the quarter ended June 30, 2024, widening nearly 30 per cent on a year-on-year (YoY) basis from Rs 267 crore in the year ago period. The EV two-wheeler maker’s revenue from operations rose 32.3 per cent YoY to for the quarter stood at Rs 1,644 crore. Ebitda loss came at Rs 205 crore for the reported quarter.
The global brokerage firm HSBC recently initiated coverage on Ola Electric with a target price of Rs 140 and buy rating. It believed that EV manufacturing costs may fall significantly by FY27/28, while internal combustion engine (ICE) scooters may go up due to emission standards.
However, it said that the barrier to e2-wheelers switching may fall but Ola’s battery venture may be a success. It sees Ola Electric as an opportunity to buy given the sustained regulatory support citing reduction in cost and positive risk-reward for the battery venture. However, slow penetration of e2-wheelers and battery plant issues are the key challenges.
