Ola Electric’s stock price jumped 16% to Rs 128 on August 16 after receiving its first-ever “Buy” recommendation following the release of its June quarter earnings.
HSBC, a major financial firm, gave Ola Electric a price target of Rs 140, predicting a 26% rise from Wednesday’s closing price. Although HSBC has a cautious view on the growth of electric vehicles (EVs) in India, it sees Ola Electric as a good investment due to strong policy support, the company’s ability to lower costs, and a promising outlook for its battery business.
In the June quarter, Ola Electric sold 49% of all electric two-wheelers in India. The company also plans to produce most of its EV components, including batteries, within the country.
On August 14, Ola Electric reported a net loss of Rs 347 crore for the first quarter, mainly due to a nearly doubled financing cost of Rs 67 crore. Total expenses for the company rose to Rs 1,849 crore from Rs 1,461 crore last year.
In August, Ola also entered the electric motorcycle market with the launch of its ‘Roadster’ series. These bikes will be available in three variants—Roadster, Roadster X, and Roadster Pro—with prices ranging from Rs 75,000 to Rs 2.5 lakh.
By 10:30 am, Ola Electric’s shares were trading at Rs 124, marking a 12% increase from the previous close. Since its stock market debut at Rs 76, Ola Electric’s shares have risen by 68%.
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