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Shares of newly-listed Ola Electric Mobility continued its uptrend for the fourth consecutive session on Wednesday, rallying nearly 26% during this period. The stock gained momentum today,
rising over 15% intraday, a day after it launched affordable electric scooters starting at a price of ₹39,000. This prompted investors to indulge in value-buying in the shares of the
country’s largest electric vehicle (EV) manufacturer. The sentiment was further lifted after the foreign brokerage Citi initiated coverage on Ola Electric with a 'Buy' rating and a target
price of ₹90.
Ola Electric shares have seen a sharp correction of 58% in the past three months, with the stock price hitting all-time low of ₹66.60 on November 22, retreating from record high of ₹157.53
touched on August 20, 2024, amid valuation concerns and increased government scrutiny. As per report, the company is under government scrutiny after more than 10,000 customer complaints
against the EV maker.
On Wednesday, Ola shares opened higher for the fourth straight session at ₹77.71, up 5.8% over the previous closing price of ₹73.47 on the BSE. Extending opening gains, the midcap stock
rallied as much as 15.1% to ₹84.60, while the market capitalisation inched close to ₹37,000 crore.
At the current level, Ola shares trade 11.3% higher above its IPO price, but 46.5% lower than its all-time high level. The stock made flat debut on stock exchanges on August 9 at par with
its initial public offering (IPO) price of ₹76.
In a post-market hour filing, the Bhavish Aggarwal-led EV company informed exchanges that it launched the Gig and S1 Z range of e-scooters to unlock the full potential of electric mobility
for the masses.
As per the company, the new range of scooters comprises Ola Gig, Ola Gig+, Ola S1 Z, and Ola S1 Z+ will be available at an introductory pricing of ₹39,999 (ex-showroom), ₹49,999
(ex-showroom), ₹59,999 (ex-showroom), and ₹64,999 (ex-showroom), respectively. The reservations for both Ola Gig and Ola S1 Z series opened at ₹499, starting from November 26, while
deliveries will begin starting April 2025, and May 2025, respectively.
“With the launch of the Ola Gig & S1 Z range of scooters, we will further accelerate EV adoption, catering to a wide range of personal and commercial use cases with affordability,
reliability, and safety as the core pillars,” said Bhavish Aggarwal, Chairman & Managing Director, Ola Electric.
“The new range of our scooters also features portable batteries that can double up as an inverter using the Ola PowerPod and power home appliances allowing for more efficient use of our
batteries,” he added.
For the September quarter of the current fiscal, Ola posted a consolidated net loss of ₹495 crore, which narrowed from ₹524 crore a year earlier. On quarter-on-quarter, the loss widened from
₹347 crore in the June 2024 quarter. The consolidated revenue from operations grew 39% to ₹1,214 crore in Q2 FY25, compared with ₹873 crore in the corresponding period last year.
During the quarter, the EV major delivered 98,619 units, up 73.6% from 56,813 units in the year-ago period.
Going ahead, the company plans to expand its network by taking store counts from 782 as of September 2024 to 2,000 by March 2025.
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