Ola Electric Mobility shares surged 20 percent to ₹133 in afternoon trading on August 16, following the first ‘Buy’ rating given by HSBC. This came just after the company’s June quarter earnings were released earlier this week. HSBC set a price target of ₹140, suggesting upside potential of 26 percent over the previous day’s closing price.
Although HSBC has maintained a cautious view on Indian penetration, it remained confident in the investment potential for Ola Electric, given that it perceived strong support from the policy environment, driven cost reduction, and an attractive risk-reward profile for its battery manufacturing foray.
Ola Electric dominated the electric two-wheeler market in Q2, selling 49 per cent of all units sold. What really impressed HSBC was its plans to locally manufacture most EV components, including batteries.
Ola Electric has reported a widened net loss of ₹347 crore for Q1FY25, mainly due to a sharp rise in financing costs that nearly doubled to ₹67 crore compared to the same period last year. Overall, expenses rose to ₹1,849 crore from ₹1,461 crore in the same period a year ago.
Apart from the financial results, the key event that grabbed the most attention at Ola in August was the launch of its ‘Roadster’ series of electric motorcycles, which saw demand blow through the roof. These electric bikes are invoiced between ₹75,000 and ₹2.5 lakh and come in three different variants: Roadster, Roadster X, and Roadster Pro with sub-variants. At 12:20 pm on August 16, the last trade of Ola Electric shares was made for ₹ 132, up about 19% from the previous close at NSE. The Ola Electric share has, to date, surged by 68% since listing since it made its stock market foray at ₹ 76.
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Source: Moneycontrol
News Desk
