The 2-wheeler EV player stock has experienced a spectacular rally since its listing, with the stock surging as much as 107% to its 52-week high of Rs 157.5, which it touched on August 20. However, the stock has faced some profit booking, currently trading at Rs 129 apiece as of 11:11 am.
“While the long-term potential of Ola Electric, especially given the EV market’s favorable 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,” said Saji John, Senior Research analyst, Geojit Financial Services.
In Q1 FY25, Electric scooter maker reported a 32% jump in revenue to Rs 1,644 crore, while the net loss widened to Rs 347 crore, from a loss of Rs 267 crore a year ago.
Earlier this week, Ola Electric received certification for production-linked incentive (PLI) benefits for two additional vehicles. The 3 kWh and 4 kWh versions of the Ola S1X were certified for compliance with the PLI scheme’s minimum localization criteria of 50%, as mandated by the Ministry of Heavy Industries.“These two products make almost 50% of our orders. More wind in our sails as we build India’s EV future!” Ola Electric founder Bhavish Aggarwal said.Earlier this year, the company had received the PLI certification for the Ola S1 Air and the Ola S1 Pro.The incentive to Ola Electric will range between 13% and 18% of the determined sales value (DSV) of the scooters. The firm is eligible for benefits for five consecutive years starting FY24.
The PLI approval for Ola’s scooters comes months after the government’s flagship FAME II (Faster Adoption and Manufacturing of Electric Vehicles) subsidy for the EV industry expired in March. The subsidy was replaced by the leaner Electric Mobility Promotion Scheme (EMPS) from April 1.
Ola Electric is also a beneficiary of the PLI scheme for advanced chemistry cell (ACC) battery storage for its Gigafactory. On August 15, the company launched its first range of electric motorcycles, the Roadster, with deliveries expected to start in the final quarter of FY25. The company aims to use its in-house cells in its products from Q1 of FY26.
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