Ola Electric Share Price BSE: Shares of Ola Electric Mobility soared 7 per cent in early trade on Tuesday to Rs 156.55.
OLAE launched three e-motorcycle variants on Aug. 15, which analysts believe will help company gain market share in a segment dominated by Hero MotoCorp and Honda.
The meteoric rise of Ola Electric share price has left analysts and investors bewildered. Yet, they suggest investors hold on to the stock as it remains a pure “momentum” play.
Since its listing on August 9, the stock has surged 106 per cent (till August 20) over its issue price of Rs 76. The issue was subscribed 4.45 times.
“It is surprising that despite the pessimism during the IPO and a tepid listing, the stock has managed to move sharply and has gathered good momentum. The fundamentals haven’t changed in the last fortnight, so the logic for such a sharp run up is hard to find. As a strategy, however, traders or investors can chase the momentum but with strict stop-losses,” Ambareesh Baliga, an independent market analyst.
Ola Electric’s circuit limit was revised downwards from 20 per cent to 10 per cent last Friday (August 16) after a spectacular rally in mere five sessions.
A large part of buying in Ola Electric stock in the last few sessions, according to Deven Choksey, managing director at DRChoksey FinServ, is attributable to massive liquidity flows in the markets and institutions adding exposure to new stocks on the block.
“The stock’s current valuations seem to be factoring in most of the developments and they appear slightly stretched in our view. Investors, who bought the shares at IPO price, may book partial profit and enter at a lower price later,” he said.
Financially, Ola Electric Mobility reported a net loss of Rs 347 crore in the April-July quarter of the current financial year (Q1FY25) as compared to Rs 267 crore net loss reported in Q1FY24. Revenue from operations, however, increased 32.3 per cent year-on-year (Y-o-Y) to Rs 1,644 crore with the automotive segment Ebitda margin at -1.97 per cent, up 632 basis points Y-o-Y.
Should You Book Profit?
Expecting more Ola Electric share price upside, Sumeet Bagadia, Executive Director at Choice Broking, said, “The stock is still looking bullish on the chart pattern. Those with Ola Electric shares in their portfolio are advised to hold the scrip further for the near-term target of Rs 175. They are advised to upgrade their trailing stop loss from Rs 90 to Rs 130 apiece.”
On the suggestion to fresh investors, Bagadia said, “Fresh investors can also buy Ola Electric shares at current market price and keep on adding after every 5-6 per cent dip maintaining stop loss at Rs 130 apiece.”
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