Shares of Ola Electric Mobility Ltd have experienced a remarkable surge, with stock prices reaching another upper circuit during Monday’s trading session. The stock was priced at Rs 146.03, hitting the upper circuit limit of 10%, reflecting a substantial increase in market capitalization to over Rs 64,400 crore. This continues a trend from its recent introduction to the stock market on August 9, showing significant investor interest.
Continuous Uptrend Post-Listing
Since its debut on the stock market, Ola Electric Mobility’s shares have witnessed an impressive rally, soaring by 92% across just six sessions. The stock commenced trading at Rs 76—the issue price—and has consistently hit the upper circuit in four out of six sessions, underscoring a robust demand among investors.
Financial Overview
For the quarter ending June 30, 2024, Ola Electric reported a consolidated net loss of Rs 347 crore, a 30% increase compared to the previous year’s Rs 267 crore. Despite the net loss, the company’s revenue from operations climbed by 32.3% year-on-year, reaching Rs 1,644 crore. The EBITDA loss was reported at Rs 205 crore for the quarter.
Market Analysis and Future Prospects
HSBC initiated coverage on Ola Electric Mobility post its first-quarter results, giving a ‘buy’ recommendation. The brokerage anticipates that electric vehicle (EV) manufacturing costs will decrease substantially by FY27/28, whereas costs for internal combustion engine scooters could rise due to stricter emission standards. Despite potential barriers to e2-wheeler adoption and challenges with the battery plant, HSBC views Ola Electric as a promising investment, especially given the supportive regulatory landscape.
Nomura also commented on the sector, noting the challenges of electrifying motorcycles but predicting a 25% market penetration in two-wheelers by FY30. The variety in pricing and range options offered by Ola suggests an intriguing future for customer responses to their products.
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