Ola Electric Mobility Ltd. is currently facing significant challenges in the stock market, with its share price experiencing a notable decline. As of October 7, 2024, the stock has fallen by approximately 8.4%, bringing its price down to ₹90.76. This marks a substantial drop of 43% from its peak of ₹157.4, which it reached shortly after its IPO listing in August at an issue price of ₹76.
Main Points
The stock’s performance has been lackluster over recent trading sessions. Today marks the third consecutive day of losses for Ola Electric, which has seen declines in five out of the last six trading days. The share opened at ₹100 but quickly dropped to a low of ₹90.76 during trading.
Key Trading Statistics:
- Current Price: ₹90.76
- Opening Price: ₹100
- Day’s Range: ₹99 – ₹102
- 52-Week Range: ₹76 – ₹157
- Market Cap: Approximately ₹43,689 Cr.
One of the critical factors contributing to Ola Electric’s stock performance is its declining market share in the electric vehicle (EV) sector. Data from VAHAN indicates that Ola’s market share has plummeted from 52% in April to just 27% by September. This decline is attributed to increased competition from established players like Bajaj Auto and TVS Motor, both of which have ramped up their EV offerings and captured greater market shares, now standing at around 20% each.
Analysts have expressed concerns regarding Ola Electric’s service quality and market strategy. A recent note from HSBC highlighted these issues and recommended a cautious approach towards the stock, despite maintaining a “buy” rating with a price target of ₹140. The brokerage emphasized that improving service quality is essential as the company prepares for new product launches.
Investors are advised to keep an eye on key support and resistance levels for Ola Electric shares:
- Support Level: The stock is nearing its IPO price of ₹76, which may act as a psychological support level.
- Resistance Level: A significant resistance level appears to be around ₹100, as it struggled to maintain this mark today.
Looking ahead, analysts suggest that Ola Electric will need to address its service quality issues and regain consumer confidence to stabilize its market position. The company recently launched a festive sale offering discounts on its products, aiming to boost sales during this crucial period.
Full Details on Stock Performance
For those looking for comprehensive insights into Ola Electric’s financial health and operational metrics:
- Revenue Growth: The company reported an impressive annual revenue growth of 510%, although it currently faces challenges with a pre-tax margin of -56% and a high debt-to-equity ratio of 128%.
- Technical Indicators: The stock is trading below key moving averages, indicating potential bearish sentiment unless it can break above these levels.
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.
