Ola Electric has been making headlines recently, particularly on October 15, 2024, when its shares saw a notable increase. This article provides a comprehensive update on Ola Electric’s share performance, expected target prices, key levels, and the factors influencing its market behavior.
Main Points
As of October 18, 2024, Ola Electric Mobility Ltd’s shares were trading at around ₹86.12. The stock has experienced fluctuations since its listing on August 9, 2024. It reached a high of ₹157.53 and a low of ₹75.99 within this period. The market capitalization currently stands at approximately ₹38,357 crore.
Ola Electric Recent Price Movement
- October 15, 2024: Shares rose by approximately 5%, reaching an intraday high of ₹91.85 after the company reported over 15,672 registrations for the month and a 34% market share in the electric two-wheeler segment.
- October 18, 2024: The stock price was reported at ₹86.12, reflecting a slight decline from previous highs due to regulatory scrutiny and market corrections.
Ola Electric Expected Target Price
Analysts have varied opinions on Ola Electric’s target price. Given its current performance and market conditions, some predict a recovery towards the ₹120-150 range in the near term if sales continue to grow during the festive season. However, caution is advised due to recent regulatory challenges that may impact investor sentiment.
Support and Resistance Levels
- Support Level: ₹75.99 (52-week low)
- Resistance Level: ₹157.53 (52-week high)
These levels are crucial for traders looking to enter or exit positions in Ola Electric shares.
Bullish Reasons
- Market Share Growth: Ola Electric has consolidated a significant 34% market share in the electric two-wheeler segment as of October 14, 2024, indicating strong demand for its products.
- Festive Season Sales: The company anticipates continued momentum in sales leading up to Diwali, which could boost revenue significantly1
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- Expansion Plans: The company is set to onboard 10,000 partners across sales and service by the end of 2025 as part of its Network Partner Program.
Bearish Reasons
- Regulatory Scrutiny: The Central Consumer Protection Authority (CCPA) has begun investigating Ola Electric’s scooters due to complaints regarding quality issues and after-sales service. This scrutiny could lead to potential legal challenges.
- Recent Stock Decline: Despite recent gains, the stock has lost nearly 9% in three trading sessions, raising concerns about its stability amidst regulatory pressures.
- Financial Performance: Ola Electric reported a loss of ₹6 crore for the latest quarter with a total income of ₹28 crore, highlighting ongoing financial challenges that could deter investors.
Important News
- Regulatory Action: On October 14, it was reported that Ola Electric faced scrutiny over its “BOSS” sale discounts and potential violations related to pricing disclosures. This has raised alarms among investors about future compliance issues.
- Sales Promotions: The company recently launched a promotional campaign offering discounts up to ₹30,000 on select models during its “BOSS sale,” aiming to attract more customers during the festive season.
- Market Competition: Ola Electric remains a key player in India’s electric vehicle market but faces stiff competition from established brands like Hero MotoCorp and new entrants in the electric two-wheeler segment.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
