Ola Electric Stock Soars 20 Per Cent Following Entry Into Electric Motorcycle Segment

Ola unveiled the indigenously developed Bharat 4680 cell and battery pack, the new Gen-3 platform, and MoveOS 5 at Sankalp 2024, Ola's annual launch event, held at its Future Factory in Krishnagiri

Ola's Q1 earnings revealed a widening net loss of Rs 347 crore, driven by a surge in financing costs, which nearly doubled to Rs 67 crore.

Source : OLA Electric

Shares of Ola Electric Mobility soared by 20 per cent to Rs 132.76 in morning trade on August 16 (Friday) following the company's first-ever 'Buy' rating after its June quarter earnings release earlier this week. HSBC initiated coverage of the newly listed company, setting a price target of Rs 140, which implies a 26 per cent upside from Wednesday's closing price.

Despite HSBC's cautious outlook on electric vehicle (EV) adoption in India, the brokerage sees potential in Ola Electric due to robust policy support, cost-cutting abilities, and a promising risk-reward profile for its battery venture.

Ola Electric captured 49 per cent of the electric two-wheeler market in the June quarter, and HSBC highlighted the company's aggressive plans to localise manufacturing of EV components, including batteries, within India.

However, the company's Q1 earnings, reported on August 14, revealed a widening net loss of Rs 347 crore, driven by a surge in financing costs, which nearly doubled to Rs 67 crore. Overall expenses rose to Rs 1,849 crore, up from Rs 1,461 crore in the previous year.

In addition to the earnings report, August also marked Ola's entry into the electric motorcycle market with the launch of the 'Roadster' series. Priced between Rs 75,000 and Rs 2.5 lakh, the new bikes will be available in three variants: Roadster, Roadster X, and Roadster Pro.

The company unveiled the indigenously developed Bharat 4680 cell and battery pack, the new Gen-3 platform, and MoveOS 5 at Sankalp 2024, Ola's annual launch event, held at its Future Factory in Krishnagiri, Tamil Nadu, on August 15, 2024.

By 11:35 am, Ola Electric shares were trading at Rs 132.76, rising 19.99 per cent on the BSE on Friday. The stock has surged 68 per cent since its listing at Rs 76.

Speaking at Sankalp 2024, Ola's annual launch event on Thursday, Ola Founder Bhavish Aggarwal said currently, two-thirds of India's two-wheeler market consists of motorcycles, and it was imperative for the company to enter the segment.

"We have already been successful in accelerating the EV adoption in the scooter segment, and with our futuristic portfolio of products, we are now focused on supercharging the EV penetration through our motorcycles," he said.