28 Nov , 2024 By : Debdeep Gupta
Shares of Ola Electric Mobility revved up 6 percent on November 28, extending its upsurge to the fifth straight session. This upward run in the stock comes after the company unveiled its most affordable electric scooters yet — the S1 Z and Gig range — with prices starting at Rs 39,000, drawing positive outlook from brokerages.
At 09.49 am, shares of Ola were trading at Rs 91.89 on the NSE. With today's gains, the stock has surged as much as 35 percent in five straight sessions.
Buoyed by the launch, brokerage firm Citigroup initiated a 'buy' call on the stock, with a price target of Rs 90. The brokerage highlighted Ola's dominant 38 percent market share in the EV two-wheeler space, extensive product portfolio, strong R&D, and vertical integration, including Li-ion cell manufacturing, which bode well for Ola.
Further, Citigroup also sees upcoming launches in motorcycles and electric three-wheelers (E3Ws) as potential volume drivers. "While service issues persist, Citi expects improvements as the supply chain stabilizes. Valuations are based on a 4x FY26 EV/Sales multiple, reflecting Ola’s leadership in a high-growth segment," Citi said.
Vikas Khemani, founder of Carnelian Asset Management and Advisors was also optimistic about Ola Electric foreseeing the scope to hold a 35-40 percent market share and new launches. “They will turn profitable this year, and once that happens, they could become a large player in the automobile industry,” Khemani had said.
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