3 days ago
Ola Electric Shares Dip 7% As 3.2% Stake Changes Hands Via Block Deal; Time To Sell?
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Shares of Ola Electric Mobility Ltd were under significant pressure in Tuesday's trading session, dropping as much as 7.04%
Ola Electric Share Price: Shares of Ola Electric Mobility Ltd were under significant pressure in Tuesday's trading session, dropping as much as 7.04 per cent to a low of Rs 49.91. The stock was last seen 5.9 per cent lower at Rs 50.52, extending its six-month losses to 48.74 per cent.
On the earnings front, the EV-focused company reported a consolidated net loss of Rs 870 crore for the January-March 2025 quarter (Q4 FY25), widening from Rs 416 crore in the same period last year. Revenue from operations plunged 59.48 per cent year-on-year (YoY) to Rs 611 crore, down from Rs 1,508 crore in the year-ago quarter.
What Should Investors Do?
Kotak Institutional Equities has maintained a 'Downgrade' rating on the stock, slashing its target price to Rs 30 per share. This suggests a potential downside of nearly 44 per cent from its previous close at Rs 53.24. The brokerage warned that Ola Electric is likely to continue facing EBITDA losses due to weakening brand equity and intensifying competition, as noted in a CNBC-TV18 report. It also flagged challenges in the company's entry into the motorcycle segment, citing execution and credibility concerns.
Technical Indicators Show Mixed Signals
Technically, Ola Electric's stock is currently trading below five of its eight key simple moving averages (SMAs) — including the 5-day, 10-day, 100-day, 150-day, and 200-day SMAs — pointing to bearish signals across various timeframes. However, the Relative Strength Index (RSI) at 57.7 indicates the stock is neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) remains positive at 0.4, staying above the center and signal lines, which suggests some ongoing bullish momentum.
For the full fiscal year 2024-25 (FY25), Ola Electric posted a net loss of Rs 2,276 crore, compared with Rs 1,584 crore in FY24. Revenue from operations also fell to Rs 4,514 crore, down from Rs 5,010 crore in FY24. The company said its gross margins improved by 38 per cent YoY in FY25, and in Q1 FY26, gross margins saw a 10 percentage point sequential improvement. Ola Electric aims to achieve profitability in the current fiscal year (FY26), focusing on revenue growth and operating leverage. 'FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability," it stated in a filing.
