Ola Share Price: Ola Electric Mobility continues to rise on the stock market, with the shares surging 20 per cent during the trade on Friday to hit Rs 132.76 apiece on the BSE. With this, the company has given 72.39 per cent gains in the past one week since its IPO listing on August 9.
The jump in Ola Electric’s shares on Friday comes after the electric mobility player on Thursday announced its foray into the electric motorcycle segment with the launch of three models and two more in the pipeline.
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The company’s shares were listed on the stock market on August 9 at Rs 75.99 apiece, compared with its issue price of Rs 76 apiece. However, the stock has been surging since then, with the shares gaining as much as over 72 per cent within a week.
On Wednesday, Ola Electric Mobility also reported a higher consolidated loss of Rs 347 crore for the April-June quarter of 2024-25 compared to Rs 267 crore in the same period last year. Its revenue from operations for the quarter was Rs 1,644 crore against Rs 1,243 crore in the same quarter of the previous fiscal.
However, the company said its automotive segment (E2W) posted a strong improvement in EBITDA (earnings before interest, tax, depreciation and amortisation) margin and is close to EBITDA breakeven.
What Analysts Say
Ola Electric Mobility’s shares have given over 60 per cent gains in a week since listing on August 9. It has received interest from various quarters. The company has also received its first ‘buy’ recommendation, with brokerage firm HSBC giving a price target of Rs 140.
HSBC said EV manufacturing costs may fall significantly by FY27/28, while internal combustion engine (ICE) scooters may go up due to emission standards. It added that the barrier to e2-wheelers switching may fall but Ola’s battery venture may be a success.
Saji John, senior research analyst at Geojit Financial Services, said Ola is likely to act as a catalyst for boosting investors’ confidence and could help accelerate the growth and adoption of electric two-wheelers across the country. It is the only automaker in India approved for both PLI schemes for advanced automotive technology and cell chemistry batteries.
“Despite profitability challenges and a loss in FY24, the company is poised to enhance profitability in the long term through improved scalability and by vertical integration. We expect the debut will encourage other players to unlock their value and validate their presence in EV expansion,” he said.
In its recent report, Nomura said motorcycles have been a tougher segment for electrification and the last few launches including Tork, Revolt, Ultraviolette and more have not been successful. However, it estimates 25 per cent on EVs in two-wheelers by FY30.
“With multiple price points and range options from Ola, it would be interesting to watch how customers respond to them,” Namura added.
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