Ola Electric Mobility shares are going to be bullish till Rs 113, good opportunity to make money
Ola Electric Mobility shares are under scrutiny as the market reacts to recent developments. After a notable surge following its IPO, the stock has faced significant fluctuations, prompting analysts and investors to reassess its future performance. This article delves into the latest updates about Ola Electric’s shares, the reasons behind the bearish trends, and what investors can expect in the near term.
Main Points
Ola Electric Mobility Ltd., which made waves after its IPO at ₹76, saw its shares reach an all-time high of ₹157.53 shortly after listing. However, the stock has since experienced a roller-coaster ride. As of today, shares have dropped significantly from their peak, closing at approximately ₹137.38 after a decline of 6.15% on Tuesday.
The recent downturn can be attributed to several factors:
- Profit Booking: Following the initial surge, many investors opted to take profits, leading to a natural correction in stock prices.
- Market Sentiment: The broader market conditions have also influenced investor sentiment, contributing to volatility in Ola’s share price.
- Lock-in Period Expiry: The end of the anchor lock-in period for 18.18 crore shares has allowed large investors to sell their holdings freely. This influx of shares into the market has increased supply and added downward pressure on prices.
Despite these challenges, analysts believe that Ola Electric still holds potential for recovery. The stock is currently viewed as “oversold,” with some brokerages projecting a rebound in the coming months.
Several financial institutions have provided insights into Ola Electric’s potential trajectory:
- Anand Rathi: The brokerage firm suggests that Ola Electric could see its share price rise to ₹170 within one to three months due to its strong fundamentals and market positioning. They recommend buying between ₹107.50 and ₹112.50 with a stop loss at ₹95.
- HSBC: This global bank initiated coverage with a target price of ₹140, citing Ola’s leadership in the electric two-wheeler market and its efforts to enhance local manufacturing capabilities. They anticipate significant revenue growth over the next few years.
- Goldman Sachs: They have set a target price of ₹160, predicting nearly a 50% upside from current levels. They emphasize that Ola is well-positioned to benefit from India’s growing electric vehicle market.
Several elements are currently shaping investor sentiment regarding Ola Electric:
- Regulatory Changes: The company recently secured compliance certification under India’s Production Linked Incentive (PLI) scheme for its S1 X scooters, which could enhance profitability by improving local supply chains.
- Market Competition: While Ola Electric is a leader in the electric scooter segment, competition is intensifying from both established manufacturers and new entrants in the EV space. This competitive landscape may affect future sales and market share.
- Economic Conditions: Broader economic factors such as inflation rates and consumer spending patterns are also influencing demand for electric vehicles, impacting investor confidence in Ola Electric’s growth prospects.
- Production Capacity: Ola’s plans to ramp up production capabilities through its Gigafactory in Tamil Nadu are crucial for meeting anticipated demand and achieving economies of scale.
As investors look ahead to tomorrow’s trading session, several scenarios could unfold:
- If selling pressure continues due to profit booking from large shareholders post-lock-in expiry, we may see further declines in share price.
- Conversely, if positive news regarding sales or production capacity emerges or if broader market conditions improve, there could be a rebound in share prices.
Investors are advised to closely monitor market trends and analyst recommendations as they navigate this volatile environment.
