This Midcap EV stock which operates in the business of manufacturing electric vehicles and its core components was down 4 percent intraday trade after the company’s CTO and CMO resigned.
Price Action
With a market capitalization of Rs. 38,471.26 Crores, the shares of Ola Electric Mobility Limited were down by 4.3 percent in the day’s trade touching a day’s low of Rs. 86 per share. The stock reiterated from the day’s low and was trading at Rs. 87.10 per share which is 3.15 percent lower than the previous closing price of Rs. 89.93 apiece. The stock has delivered a negative return of 4.2 percent and has underperformed the Nifty Index on a YTD basis.
What Happened
The company stock was down following the resignations of Chief Technology Officer (CTO) and product officer Suvonil Chatterjee and Chief Marketing Officer (CMO) Anshul Khandelwal on December 27, 2024, with immediate effect. Both Senior managerial personnel cited personal reasons for their resignation.
About the Company
Ola Electric Mobility Limited, founded in 2017, specializes in manufacturing electric vehicles (EVs) and core components like battery packs and motors. They operates from its Futurefactory and has launched several models, including the Ola S1 series. Its business model is built on three scalable platforms which are R&D and technology, adaptable manufacturing, and a direct-to-consumer omnichannel distribution network. Ola Electric aims to accelerate sustainable transportation through innovative solutions, including extensive charging infrastructure for consumers, while also targeting international markets for expansion.
Financials & Ratios
The company’s revenue from operations increased by 39 percent year on year from Rs. 873 Crores in Q2FY24 to Rs. 1,214 Crores in Q2FY25, accompanied by a loss of Rs. 524 Crores to a loss of Rs. 495 Crores.
The net profit margin stood at -31.63 percent and the debt-to-equity ratio stood at 1.01 as of FY24. The current ratio stood at 1.14 times.
Market Share
The company’s market share as of November 2024 stood at 24.54 percent fell from 33 percent the previous year which is near to TVS Motor Co’s 23 percent and Bajaj Auto’s 22 percent.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 36.78 percent in Ola Electric Mobility, Foreign Institutional Investors (FII) holding 4.18 percent, Domestic Institutional Investors (DII) holdings at 5.16 percent, and public holdings standing at 53.88 percent.
Written by Santhosh S
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