Ola Electric share price gains after 2 straight sessions. Here’s why

Ola Electric Mobility shares saw a slight rebound on Thursday, rising by 1.41% to Rs 75.45, after two consecutive sessions of losses. The stock briefly surpassed its IPO price of Rs 76, but it remains volatile, with concerns over ongoing consumer complaints. Despite today’s gain, the stock is down more than 52% from its all-time high of Rs 157.53.
The uptick in the stock price is attributed to Ola Electric’s recent inclusion in the MSCI Small Cap Index, which could boost its trading volume and liquidity. Additionally, the company is set to report its Q2FY25 results tomorrow, which may also be influencing investor sentiment.
A couple of days ago, Ola Electric shares plummeted over 8%, falling below their IPO price for the first time since the lock-in period ended, hitting a record low of Rs 73.70.
While Ola Electric has gained market share, profitability and breakeven remain key focus areas. The company has also been facing service-related issues, leading to increased scrutiny from the Centre. The Central Consumer Protection Authority (CCPA) issued a showcause notice to the company, further complicating its outlook.
A few days ago, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities told Business Today that the stock is likely to remain weak in the medium term, though investors with a higher risk tolerance might consider holding the stock. “For those looking to enter, it may be worth waiting for lower levels, but only with a long-term view,” he added.
From a technical standpoint, analysts indicate the stock remains weak, with some suggesting it could fall toward Rs 70. Ravi Singh, Senior Vice-President at Religare Broking, described the stock as being in a “no-trade” zone, while AR Ramachandran, a SEBI-registered research analyst, believes it is oversold and could find support at Rs 59.4, advising buying only if the stock closes above Rs 80.3 for a potential target of Rs 100.
Ola Electric, founded in 2017, is an electric vehicle manufacturer that produces vehicles and components such as battery packs and motors at its Ola Futurefactory. As of September 2024, the promoters hold a 36.78% stake in the company.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)