Ola Electric’s stock jumped about 17% on Tuesday, climbing from its 52‑week low of ₹30.76 to an intraday high of ₹36.10.
Recent price action
The share opened at ₹34.64 on the NSE and quickly moved higher, still staying well above last week’s trough. Traders see the bounce as a sign of renewed buying interest, but the stock still faces a key hurdle around ₹38.
Technical outlook
Analysts note a few important price levels:
- Strong support at ₹32 and a deeper support around ₹28.
- Resistance at ₹38. A clear break could push the price toward ₹42 and eventually ₹45.
For current holders, a stop‑loss around ₹32 is suggested, while new buyers might consider a stop‑loss near ₹28.
Fundamental backdrop
Ola’s scooter production capacity is about 1.3–1.5 million units per year when fully utilized. The company’s battery‑cell gigafactory currently produces 2.5 GWh and aims for 5.9 GWh by March 2026 and 20 GWh by FY27.
To reach these goals, the gigafactory will need an extra ₹1,200–₹1,500 crore in capital spending, largely financed by a loan led by SBI. This adds debt compared with peers like Ather, which do not have similar cell‑related spending.
Potential growth drivers
- Vertical integration of cells, battery packs, motors, software, and vehicle assembly could lower two‑wheel costs over time.
- Ola plans to sell battery cells to other EV makers, opening a new B2B revenue stream.
- The battery‑energy‑storage‑system (BESS) business is targeted to generate around ₹1,000 crore by FY27.
- Electric motorcycles contribute roughly 10–15 % of revenue today.
Financial snapshot
Revenue has slipped about 12–13 % quarter‑on‑quarter over the last five quarters, down roughly 43 % year‑on‑year. Losses are narrowing—down about 46 % quarter‑on‑quarter and 15 % year‑on‑year**—but the revenue decline remains a concern.
What investors might consider
While the recent price rally looks promising, the stock still needs to prove it can stay above the ₹38 barrier and sustain earnings growth. Investors should weigh the debt needed for the gigafactory against the long‑term upside of a vertically integrated EV business.
Disclaimer
Remember, this is just an overview, not a prediction. Do your own research or talk to a certified financial advisor before making any investment decisions.