Shares of Ola Electric Mobility surged over 6% on August 20, reaching a fresh record high of Rs 157.4 on the National Stock Exchange (NSE). Since its listing earlier this month, the stock has seen an extraordinary rise, surging by 107% from its issue price of Rs 76, more than doubling investors’ capital.
The significant price increase was accompanied by a large trade of 2.3 crore shares, representing 0.5% equity in Ola Electric, valued at Rs 352.9 crore. The shares were traded at an average price of Rs 151 per share, further solidifying the stock’s upward momentum.
At 9:22 am, Ola Electric shares were trading over 4% higher at Rs 152.45 on NSE. The stock has gained approximately 67% since its listing earlier this month, significantly outperforming the benchmark Nifty, which rose by only half a percent during the same period.
Analyst Insights: Mixed Views on Valuation
While the sharp rise in Ola Electric’s stock has captured investor interest, some analysts express caution. Saji John, Senior Research Analyst at Geojit Financial Services, noted that while the long-term potential of Ola Electric, particularly in the electric vehicle (EV) market, is promising, the current valuation appears speculative.
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Earlier, HSBC initiated coverage on Ola Electric with a “Buy” rating and a target price of Rs 140. The bank acknowledged potential downside risks, including slower adoption of electric two-wheelers (e2Ws) and operational challenges at Ola’s battery plant. Despite these concerns, HSBC believes that Ola Electric is a worthwhile investment, driven by sustained regulatory support, cost-reduction capabilities, and a favorable risk-reward profile in its battery venture. Notably, Ola Electric’s share price has already surpassed HSBC’s target price, highlighting the stock’s strong performance.
Ola Electric’s Position in the EV Market
Ola Electric’s rapid ascent in the stock market reflects growing investor confidence in the company’s ability to capitalize on the expanding EV market. The sustained regulatory support for EV adoption in India, combined with Ola’s strategic initiatives to reduce production costs, has positioned the company as a key player in the sector.
Despite the impressive gains, investors should remain mindful of the potential challenges and uncertainties that could impact Ola Electric’s future growth. The stock’s current valuation
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