Ola Electric continued to be in demand on the bourses with its shares shooting up by 10 per cent to hit the upper circuit.
Shares of the pure play EV maker on Monday closed at ₹146.03 and ₹146.38 on the BSE and the NSE, respectively. This is at least a 92 per cent jump from the issue price of ₹76. At closing, the Bhavish Aggarwal-led firm had a market cap of ₹64,565.73 crore on the NSE. It stood at ₹64,411.35 crore on the BSE,
The sharp run-up in its stock prices has now led to questions on whether its valuations are stretched. Some of the market experts are advising investors to exercise caution.
“While the long-term potential of Ola Electric, especially given the EV market’s favourable outlook, might be appealing, the current valuation appears to be quite speculative. Investors should be cautious, especially given the company’s ongoing losses and the high volatility in its stock price. For new investors, it may be wise to wait for a more stable entry point or consider the stock as a long-term play with a high risk-reward ratio,’’ Saji John, senior research analyst, Geojit Financial Services, said.
Market circles attribute these gains to low floating stock and optimism over its entry into the motorcycle segment. Here John added that at its annual ‘Sankalp’ event, Ola Electric introduced four new motorcycles across various price ranges.
“While motorcycles dominate the broader two-wheeler market in India, their share in the EV segment is currently just 1 per cent. The launch is expected to positively impact as the company benefits from a first-mover advantage in the electric motorcycle segment,” he observed.
