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Economic Times
17 hours ago
- Automotive
- Economic Times
Ola Electric skids as widening losses dent sentiment
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Shares of electric two-wheeler maker Ola Electric Mobility declined 4.5% on Friday after the company's weak fourth quarter results, and a loss in market share disappointed investors. Kotak Institutional Equities downgraded the stock to 'Sell' and cut its price target to ₹30 from ₹50 earlier, implying a downside of 41% over Friday's closing price of ₹50.85."The past couple of quarters' performance has been marred by a weaker volume print and rising warranty provisions, which weighed on profitability," said the brokerage."With a deteriorating balance sheet, the company needs to scale up its volumes to reduce cash outflow."Ola's losses widened from ₹564 crore in the December quarter to ₹870 crore in March, while revenue from operations fell by 41.5% in this period."Ola Electric's fourth quarter results reflect a sharp deterioration in its key financial metrics, underscoring deep-rooted operational and strategic concerns," said Sagar Shetty, research analyst, StoxBox. "These challenges are further exacerbated by intensifying competition in the EV two-wheeler space, as legacy players aggressively scale up and consolidate market share."In May, TVS and Bajaj Auto have already crossed Ola in terms of electric two-wheeler sales, as per Vahan said the near-term outlook for the stock is clouded because "consumer confidence in the company appears to be undermined by ongoing concerns surrounding the company's sales reporting practices and consumer services issues".Ola Electric got listed in August last year. The IPO was priced at ₹76. The stock hit an all-time high of ₹157.4 soon after the Goldman Sachs remains bullish on the stock, with a 'Buy' rating, while cutting its price target from ₹75 to ₹70, implying 38% upside from here."We view the current valuation levels as attractive, given the pure-play EV exposure and high growth potential ahead," said the Goldman brokerage said catalysts for the stock include electric motorcycle launches, electric three-wheeler launches, improvement in cell production yields and PLI (production-linked incentive) certification on balance has cautioned investors against buying the stock for now and to wait for clear, sustained improvements in the company's financial performance in upcoming quarters.
Economic Times
a day ago
- Business
- Economic Times
Make the bright spot brighter: India is Asia's top investment bet, but jobs & reforms remain key hurdles
We are living in a time of heightened uncertainty, and expect that uncertainty to weigh on economic activity. But against this backdrop, India presents the best growth opportunity in investors seem to be taking comfort - first, in the pause of Trump's 'reciprocal' tariffs, then in lowering of US tariffs on China - this is more reprieve than relief. Getting to a trade deal with the US will be difficult particularly for China, and potentially for Europe, as the multitude of issues will mean that negotiations will be complex and will likely take time. A deal with the two major trading blocs will be critical to lower uncertainty. As long as uncertainty persists, it will keep weighing on corporate confidence, capex and trade. As it relates to this week's ruling of the US Court of International Trade blocking imposition of 'reciprocal' tariffs, the Trump administration has already indicated that it will appeal, and may yet consider other avenues through which it may still impose tariffs. For India, starting point of the lowest ratio of goods exports to GDP means it's the least exposed to trade tensions within Asia. Moreover, work has already proceeded well on negotiating a trade deal. India seems well-positioned within the region to secure such a domestic demand is recovering after a period of slowing last year. Both fiscal and monetary policies are supportive and can do more to support growth as needed. On the fiscal side of things, rebound in capex is supporting monetary policy, RBI has cut rates, injected liquidity into the banking system, and lightened up on regulations that were constraining non-bank credit. There should be more rate cuts, given that macro stability, especially inflation, is very much in control and will stay within the central bank's target range. The weak dollar environment, which should persist, and lower oil prices, are also factors that will support India. At the same time, India will be one of the economies which can benefit from supply chain diversification. It has already been making concerted efforts since 2019 to lift its participation in global value chains and raise its manufacturing exports. These efforts are bearing fruit, as supply chains, especially those in electronics manufacturing, are shifting to India, with more domestically produced content. GoI has laid the foundation, principally through increased investment in infrastructure and in providing a PLI scheme. This has also helped to catalyse an increase in overall investment, which will be beneficial for employment creation. In the next stage of attracting more investment in manufacturing capabilities, state and local governments will have to play a crucial role in systematically improving the ease of doing business at the state worry about drag from goods trade lingers, a strong engine of growth has been quietly emerging. Investors should not underestimate the strength in services exports and their role in helping to secure strong growth for of India's services exports has risen significantly over the last four years. They have doubled since December 2020, and value addition in them is much higher than in goods exports. Services exports have now reached $410 bn on a 3-month trailing sum annualised basis in April, close in size to the $445 bn of goods exports. This rising structural trend is a result of two important trends: India has continued to gain services export market share. There is added momentum from a rise in market share in an environment where digitalisation is expanding the addressable these factors should ensure that the rise in this sector will be more defensive, even in an environment where global growth is strength in India's economy, buttressed by domestic demand and uptrend in services exports, means that India will be one of the fastest-growing economies in a world that is currently starved of growth. Medium-term growth averaging 6.5% is still expected. By 2028, India should contribute about one-fifth of global real GDP growth (vs 16% in 2024) and to overtake Germany as the third-largest economy in nominal dollar GDP 6.5% growth over the medium term may offer a compelling growth opportunity for investors, this pace will, however, not be able to generate enough jobs to fully absorb the labour force growth. Policymakers are already making efforts to target stronger growth, and shifting the growth mix towards the industrial sector, which will considering the magnitude of the jobs problem, there is an urgent need to accelerate the pace, and do more. A comprehensive reform package will be needed, including accelerated build-out of public infrastructure, especially for last-mile connectivity, as well as a systematic approach that incentivises state governments to improve the business environment and ensure the labour force is adequately this is not achieved, it could lead to a vicious loop in which a rise in social stability pressures can lead policymakers to take up redistribution efforts again. This would bring back macro stability risks. (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. 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Time of India
a day ago
- Business
- Time of India
India's FY25 economic growth hits four-year low of 6.5%, Q4 GDP beats estimates
India's economic growth in FY25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24. However, Q4 GDP growth beat estimates after accelerating to 7.4 per cent but it couldn't save the economy from posting its slowest growth since Covid-era. Nonetheless, New Delhi's key officials have backed India's growth potential and vouched that the country will retain its title as the fastest-growing major economy in the world. The full-year growth remained within official projections, as private investment remained subdued amid global uncertainties. In the quarter ending March 31, 2025, India's growth stood was fastest in the four quarters, on the back of robust industrial activity and sustained global trade tensions grew larger by day. The third quarter had seen growth rise to 6.2 per cent, revised upward from an earlier estimate of 5.6 per cent, showing resilience amid global headwinds. The fourth quarter was marred by global trade disruptions led by Trump's tariffs and escalation of the Russia-Ukraine war. However, the Indian economy powered through the storm on the back of pick up rural demand and healthy government spending. Moreover, the latest growth figures continue to keep New Delhi in the race of fastest economies in the world. The International Monetary Fund (IMF) also expects India's economic size to surpass Japan's by the end of the year, reaching $4.18 trillion. A notable divergence between GDP and gross value added (GVA) was expected with the latter stripping out taxes and subsidies for a clearer picture of underlying economic activity. The GVA stood at 6.4 per cent. JP Morgan, for instance, estimated March quarter GDP growth at 7.5 per cent , but GVA growth at a more modest 6.7 per cent . Some analysts said that the higher-than-expected GDP print might be a reflection of a fall in government subsidies, which could inflate the headline number without reflecting equivalent real economic momentum. Despite the external challenges, the Indian economy remains relatively healthy due to its limited reliance on global goods trade, recent tax cuts, controlled inflation and a potentially softer interest rate environment. 'While external uncertainties—such as supply chain disruptions and energy market volatility—pose challenges, India continues to benefit from strong service sector performance, a stable banking system, and improving manufacturing output under schemes like PLI,' said Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuations and Ratings Ltd. In February 2025, the RBI had, for the first time in five years, cut the repo rate by 25 bps, a move expected to aid India's growth blitz. Retail inflation dropped to a near six-year low of 3.16 per cent in April, and a favourable monsoon forecast is expected to help stabilize food prices—factors that could allow the Reserve Bank of India (RBI) to consider a rate cut in June. Looking ahead, the RBI has projected 6.5 per cent growth for the fiscal year beginning April 1, 2025. 'On the inflation front, CPI is expected to moderate from 4.9 per cent in FY25 to 4.3 per cent in FY26, aided by easing food prices, prudent monetary policy, and a normal monsoon forecast. However, inflationary risks persist because of global commodity prices and any escalation in geopolitical tensions,' said Sharma.
Hans India
a day ago
- Business
- Hans India
India's GDP Growth Hits 7.4% in Q4 FY25, Highest in Four Quarters; Annual Growth at 6.5%
In the last quarter of FY25, India's economy saw strong growth, with GDP growing by 7.4%, the fastest quarterly growth in the previous year. Despite global challenges, the economy grew steadily, with full-year GDP growth of 6.5%, according to official data released on Friday. Resilience in the services sector, robust domestic demand, and a manufacturing recovery propelled the fourth-quarter results. This strengthens India's standing as one of the world's major economies with the quickest rate of growth and represents a notable increase over prior quarters. Economists attribute the growth boom to increased capital expenditures, policy-driven infrastructure expansion, and improved rural demand. The government's focus on Aatmanirbhar Bharat and production-linked incentive (PLI) programs has also helped to boost industrial output and employment. The data indicates a favourable prognosis for FY26, with analysts anticipating further momentum if macroeconomic stability is maintained, despite concerns about inflation and geopolitical risks.
Economic Times
a day ago
- Business
- Economic Times
India's FY25 economic growth hits four-year low of 6.5%, Q4 GDP beats estimates
India's economic growth slowed to a four-year low of 6.5% in FY25, despite a stronger-than-expected Q4 performance of 7.4%. Key officials remain optimistic about India's growth potential, expecting it to remain the fastest-growing major economy. Factors like robust industrial activity, rural demand, and government spending helped navigate global trade disruptions, with the IMF projecting India's economy to surpass Japan's. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's economic growth in FY25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24. However, Q4 GDP growth beat estimates after accelerating to 7.4 per cent but it couldn't save the economy from posting its slowest growth since New Delhi's key officials have backed India's growth potential and vouched that the country will retain its title as the fastest-growing major economy in the full-year growth remained within official projections, as private investment remained subdued amid global the quarter ending March 31, 2025, India's growth stood was fastest in the four quarters, on the back of robust industrial activity and sustained global trade tensions grew larger by third quarter had seen growth rise to 6.2 per cent, revised upward from an earlier estimate of 5.6 per cent, showing resilience amid global fourth quarter was marred by global trade disruptions led by Trump's tariffs and escalation of the Russia-Ukraine war. However, the Indian economy powered through the storm on the back of pick up rural demand and healthy government the latest growth figures continue to keep New Delhi in the race of fastest economies in the world. The International Monetary Fund (IMF) also expects India's economic size to surpass Japan's by the end of the year, reaching $4.18 trillion.A notable divergence between GDP and gross value added (GVA) was expected with the latter stripping out taxes and subsidies for a clearer picture of underlying economic activity. The GVA stood at 6.4 per Morgan, for instance, estimated March quarter GDP growth at 7.5%, but GVA growth at a more modest 6.7%.Some analysts said that the higher-than-expected GDP print might be a reflection of a fall in government subsidies, which could inflate the headline number without reflecting equivalent real economic the external challenges, the Indian economy remains relatively healthy due to its limited reliance on global goods trade, recent tax cuts, controlled inflation and a potentially softer interest rate environment.'While external uncertainties—such as supply chain disruptions and energy market volatility—pose challenges, India continues to benefit from strong service sector performance, a stable banking system, and improving manufacturing output under schemes like PLI,' said Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuations and Ratings February 2025, the RBI had, for the first time in five years, cut the repo rate by 25 bps, a move expected to aid India's growth inflation dropped to a near six-year low of 3.16% in April, and a favourable monsoon forecast is expected to help stabilize food prices—factors that could allow the Reserve Bank of India (RBI) to consider a rate cut in ahead, the RBI has projected 6.5% growth for the fiscal year beginning April 1, 2025.'On the inflation front, CPI is expected to moderate from 4.9% in FY25 to 4.3% in FY26, aided by easing food prices, prudent monetary policy, and a normal monsoon forecast. However, inflationary risks persist because of global commodity prices and any escalation in geopolitical tensions,' said Sharma.
