Ola Electric Mobility Share Latest Update
About the Company:
Founded in 2017, Ola Electric Mobility Ltd. is an industry leader in India’s electric vehicle (EV) space, primarily known for its electric scooters. With a 31% market share in the electric two-wheeler (E2W) sector, the company has revolutionized EV transportation, especially through its flagship scooters, the Ola S1 Pro, S1 Air, and S1 X. Its production facility, Ola Futurefactory, is India’s largest automated electric two-wheeler manufacturing plant, with an annual capacity of 1 million units. Ola’s ambitious growth plan includes a new gigafactory for battery production, which will significantly expand its manufacturing capacity in the coming years.
Company Pros and Cons:
- Pros:
- Market Leader: Ola Electric holds a dominant position in the Indian electric scooter market, with a 31% market share.
- Diverse Product Line: The company offers a range of scooters catering to various segments, including premium and budget-friendly options.
- Innovative Manufacturing: The Ola Futurefactory is highly automated, ensuring large-scale production capability and quality control.
- Expansion Plans: The gigafactory in Tamil Nadu and the launch of new electric motorcycles indicate long-term growth potential.
- Cons:
- High Customer Complaints: With nearly 3,000 complaints in FY24 regarding product quality and servicing, customer satisfaction remains a challenge.
- Heavy Revenue Reliance on One Model: The Ola S1 Pro contributes over 59% of revenue, making the company somewhat reliant on the success of a single product.
- Limited International Presence: While dominant in India, Ola Electric’s reach outside of India is limited, restricting global market opportunities.
- Stock is trading at 4.88 times its book value
- Company has low interest coverage ratio.
- Company might be capitalizing the interest cost
Chart Behavior and Analysis:
The recent price movement of Ola Electric’s shares shows a strong bearish trend with declining volume, which could suggest a potential base formation. The stock has moved from a high of ₹157.40 to its current range around ₹72.60, hitting its 52-week low. The chart shows a consistent downtrend, with the stock trading below the moving averages, indicating bearish sentiment.
The RSI is around 32.75, signaling oversold conditions, which may prompt a reversal if buying pressure increases. Traders might consider watching for a break above the nearest resistance at ₹76.83, with a potential recovery target closer to ₹90 if the trend reverses.
When to Buy:
For investors looking to capitalize on Ola Electric’s long-term potential, the current price levels may offer an attractive entry point, especially given the oversold RSI and near support levels. A cautious approach would be to wait for confirmation of a reversal pattern, such as a break above the ₹76.83 level with strong volume, indicating a shift in momentum.
Long-term investors may view this as an opportunity to accumulate shares at lower levels, especially if they believe in the growth of the EV sector and Ola’s continued dominance. However, short-term traders should closely watch for any signs of support breakdown below ₹72, which could lead to further downside.
Fundamentals
| Market Cap | ₹32,084Cr |
| ROE | -24.90% |
| P/E Ratio (TTM) | -20.26 |
| EPS (TTM) | -3.59 |
| P/B Ratio | 5.09 |
| Dividend Yield | 0.00% |
| Industry P/E | 22.49 |
| Book Value | 14.30 |
| Debt to Equity | 0.51 |
| Face Value | 10 |
Disclaimer:
The information provided in this video is for educational purposes only. I am not a financial advisor, and any stock recommendations are based on my personal opinions. Please do your own research and consult a certified financial advisor before making any investment decisions.
