Shares of Ola Electric Mobility Solutions Ltd. continued its rally for the second consecutive session on Friday after the company marked its entry into the electric motorcycle segment by launching Roadster Series
At the company's annual event, Sankalp 2024, CEO Bhavish Aggarwal said that the launch is not just about expanding their product line but also about leveraging existing infrastructure to drive efficiency and scalability.
"As we scale the production of our motorbike over the next few quarters, it will maximise the output from our current factory and investments," he said, adding that the bike will start with the same margin as our scooters today.
Following the launch, HSBC began its coverage of the stock with a 'buy' and a target price of Rs 140 apiece. "Despite our conservative view on EV penetration in India, along with other uncertainties, we believe Ola is worth investing in … given sustained regulatory support, Ola’s ability to reduce costs, and a positive risk-reward in its battery venture," it said.
The company also teased two new motorcycles—the Sportster and Arrowhead. The company also showcased the indigenously developed Bharat 4680 cell and battery pack at the event and announced that its cells will be integrated into its own vehicles starting in the first quarter of fiscal 2026.
On the downside, HSBC noted slower penetration of e-two-wheelers and battery plant issues as key downside risks.
Ola Cabs Rebranded To Ola Consumer, To Launch 100% Automated Dark Store
On Wednesday, the company reported a widening net loss of Rs 347 crore, compared to a loss of Rs 267 crore in the previous year. The company made a loss of Rs 205 crore at the operating level, compared to a loss of Rs 218 crore in the previous year.
Aggarwal told NDTV Profit that a Rs 23 crore PLI scheme reversal by the government's policy changes affected the automotive segment, which was on the verge of reaching Ebitda positivity. Despite this setback, Aggarwal expressed confidence in the sustainability of the EV business model.
Shares of the company rose as much as 15.60% to 128.20 apiece. It pared gains to trade 8.8% higher at Rs 120.80 apiece as of 9:59 a.m. This compares to a 0.69% advance in the NSE Nifty 50 Index.
The stock has risen 59.01% since listing. Total traded volume so far today was 1.1 times its 30-day average. The relative strength index was at 55.
One analyst tracking the company has given the stock a 'buy' rating. Its 12-month consensus price target implies an upside of 16.3%.
Ola Cabs Rebranded To Ola Consumer, To Launch 100% Automated Dark Store. Read more on Markets by NDTV Profit.