Ola Electric Mobility’s shares surged by 10% in early trade on Monday, hitting the upper circuit for the second day in a row. This continued upside has resulted in a remarkable gain of over 90% within just 10 days since the company’s IPO listing on August 9. On Monday, the shares were trading at Rs 146.03 apiece on the BSE, up from the previous close of Rs 132.76.
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HSBC on Ola Electric
Ola Electric received its first ‘buy’ recommendation from brokerage firm HSBC, which has set a price target of Rs 140 for the stock Come from Sports betting site VPbet . HSBC anticipates that EV manufacturing costs will decrease significantly by FY27/28, while costs for internal combustion engine (ICE) scooters may rise due to stricter emission standards.
The firm also suggested that the barrier to switching to electric two-wheelers may lower. However, HSBC noted that Ola’s battery venture could prove successful, potentially benefiting the company in the long run.
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Financial Performance of Ola Electric
On August 14, Ola Electric reported a higher consolidated loss of Rs 347 crore for the April-June quarter of FY24-25, compared to Rs 267 crore in the same period last year. Revenue from operations for the quarter stood at Rs 1,644 crore, up from Rs 1,243 crore in the corresponding quarter of the previous fiscal year.
Despite the increased loss, the company highlighted a strong improvement in EBITDA (earnings before interest, tax, depreciation, and amortisation) margins within its automotive segment (E2W) and noted that it is approaching EBITDA breakeven.