Ola's Uncertain Future: Why Investors Should Steer Clear of the Stock for Now

Investors are getting nervous about Ola's future after the company's promoter sold a partial stake, causing the stock to hit fresh lows. Amid the growing uncertainty, market expert Siddhartha Khemka is advising investors to stay away from the stock due to a lack of clarity on the company's roadmap.

Caution and Uncertainty

Khemka, who is the Head of Research at Motilal Oswal Financial Services, pointed out that Ola's business needs to scale up significantly to reach its full potential. Although he has a positive outlook on the company's two-wheeler electric vehicle (EV) business, he stresses that the current ambiguity surrounding Ola's future strategy and growth plans makes it a risky investment.

Competitive Landscape

Khemka notes that established players like TVS Motors and Bajaj Auto have already gained a significant market share in the EV two-wheeler space, setting a high benchmark for Ola to compete. He identifies TVS Motors as a preferred pick in the two-wheeler segment due to its established market leadership in the EV two-wheeler category.

Investment Advice

Given the current uncertainty, Khemka recommends that investors wait for more definitive information and a clearer strategic direction from Ola's management before considering an investment in the company. In the meantime, he suggests exploring other investment opportunities in the market. Some key points to consider include:

• Ola's lack of a clear roadmap makes it a risky investment compared to more established players.
• The company's two-wheeler EV business has potential for growth, but needs to scale up significantly.
• TVS Motors is a preferred pick in the two-wheeler segment due to its established market leadership in the EV two-wheeler category.

Remember, this is just a perspective, not a prediction. It's essential to do your own research and consider multiple viewpoints before making any investment decisions.