Buying may come in Ola Electric share price after the fall of Rs 110, understand the movement of the market
Ola Electric Mobility Ltd. (OLEM) shares have been in the spotlight lately, with investors closely watching the company’s performance and the impact on its share price. As of September 2, 2024, the stock closed at ₹114.60, down 2.87% from the previous trading session. The company’s market share has taken a hit, dropping from 49% at the end of the June quarter to 31% at the end of August. Meanwhile, its closest competitors, TVS and Bajaj Auto, have gained ground, holding market shares of 20% and 19%, respectively.
Despite the introduction of lower-priced electric two-wheelers, overall EV penetration in the segment has remained in the 4-7% range over the past two years. However, Jefferies expects this penetration to gradually increase in the coming years.For the quarter ended June 30, 2024, Ola Electric’s net loss widened by about 30% year-on-year to ₹347 crore. The firm’s consolidated revenue from operations rose 32% to ₹1,644 crore as against ₹1,243 crore in Q1FY24.
Main Points
From a technical perspective, Ola Electric shares have been trading in a range between ₹135 and ₹139 today, with a 52-week low of ₹76.00 and a high of ₹157.40. The stock’s circuit range is between ₹124.24 and ₹151.86.Intraday trading levels for Ola Electric are as follows:
- Support 1: ₹135
- Support 2: ₹124.24
- Resistance 1: ₹139
- Resistance 2: ₹151.86
Zomato Share Price on 3rd September, tremendous buying may come after the fall till Rs 232.
Ola Electric’s market capitalization stands at ₹59,559 crore as of September 2, 2024. The company’s PE ratio (TTM) is -37.59, while the sector PE is 36.99. ROE is 0%, and ROCE is -37.33%.In terms of financials, Ola Electric reported revenue from operations of ₹2,631 crore for the fiscal year 2023, with an EBITDA of -₹1,101 crore and a profit after tax of -₹1,472 crore.
Looking ahead, the market outlook for Ola Electric remains cautious, with the stock extending its decline to a fourth trading session in a row. Investors will closely monitor the company’s ability to regain market share and improve its financial performance in the coming quarters.
Peer Comparison
Ola Electric’s performance can be compared to its peers in the auto and auto ancillaries sector:
| Company | Market cap (₹ Cr) | PE | ROE (%) | ROCE (%) | OPM (%) | EPS growth* |
|---|---|---|---|---|---|---|
| Ola Electric | 59,559 | -37.59 | 0 | -37.33 | – | N/A |
| TVS Motor | 60,869 | 35.79 | 26.61 | 32.50 | 89.88 | 28.33% |
| Bajaj Auto | 2,75,048 | 33.82 | 22.17 | 24.60 | 77.99 | 37.18% |
Based on the current market trends and Ola Electric’s performance, the stock is expected to face some resistance at the ₹139 level. If the stock breaks above this level, it could test the ₹151.86 resistance. However, if the stock fails to hold above ₹135, it could retest the ₹124.24 support level.
Investors should keep a close eye on the company’s ability to regain market share and improve its financial performance. The upcoming quarterly results will be a crucial indicator of the company’s future prospects.
Note: This article is written for educational purposes, Local Haryana does not provide buying and selling of any kind of stock
