Ola Electric Stock Price : For the first time, a brokerage house has given a buy rating on the stock of Ola Electric, which has strengthened the sentiment about it. The stock of electric scooter maker Ola Electric has seen a strong rally today. Today, the stock strengthened by about 13 per cent to reach a price of Rs 128. Whereas on Wednesday it closed at Rs 111. Anyway, the stock has strengthened by about 64 per cent since listing. In future, this stock can reach a price of Rs 140. The brokerage sees strong growth prospects in the electric scooter segment.
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Buy rating on the stock
Brokerage house HSBC has given a Buy rating on Ola Electric’s stock and has set a target price of Rs 140. This is the first time a brokerage has covered the stock after listing. The stock of electric scooter maker Ola Electric was listed on the stock market on August 9; the stock was listed at Rs 76 as compared to the IPO price of Rs 76. But since listing, the stock has increased by 50% to Rs 128. That is, it has already gained 689% compared to the issue price. If we look at the brokerage’s target of Rs 140, then it is 84% higher than the issue price. At the same time, it is 26% higher than Wednesday’s closing price of Rs 111.
According to the brokerage house, EV manufacturing cost is expected to decline significantly by FY27/28, while the cost of ICE scooters may increase due to strict emission standards. The barriers to switching to electric two wheeler vehicles (E2W) may reduce and Ola’s battery venture may prove to be successful. The brokerage believes that Ola looks like a better pick given the continued regulatory support, ability to reduce costs and positive risk-reward profile for its battery venture.
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Ola Electric suffers quarterly loss of Rs 347 crore
Ola Electric released its quarterly results on Wednesday. The company’s net loss increased to Rs 347 crore compared to the same quarter last year. The company had suffered a loss of Rs 267 crore in the April-June quarter of the previous year. Ola Electric Mobility said in a notice to the stock market that its operating income in the quarter under review was Rs 1644 crore, while it was Rs 1243 crore in the same quarter last year. While its EBITDA loss remained largely stable at Rs 205 crore compared to a loss of Rs 218 crore last year.
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What is the growth strategy of the company
- India centric EV product with India first strategy.
- Continue to invest in research and development to advance technological capabilities and optimize costs.
- Creation of an EV hub with vertically integrated manufacturing and supply chain to improve cost efficiency.
- Developing cell technology and strengthening in-house manufacturing capabilities.
- Expanding product portfolio to increase market penetration. Strengthening D2C omnichannel network across sales, services and charging.
- Efficient allocation of capital and focus on growth.
- Strongly positioned to take advantage of global EV opportunities.
(Source: SBI Securities)
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