This EV stock, which operates in the business of manufacturing electric vehicles and its core components, plans to maintain growth amid competition in the Electric Vehicle (EV) market. The stock has been declining from its 52-week high due to various issues. In this article, we will look at its financials, issues, market share, and its plans.
Price Action
With a market capitalization of Rs. 25,102 Crores, the shares of Ola Electric Mobility Limited were down by 5.40 percent in the day’s trade touching a day’s low of Rs. 56.18 per share. The stock reiterated and closed at Rs. 56.91 per share, which is 4.18 percent lower than the previous closing price of Rs. 59.39 apiece.
The stock has delivered a negative return of 37.92 percent and has underperformed the Nifty Index from the time of listing on the bourses.
Stock Correction Amid Huge Competition
The company stock after listing surged to a 52-week high to Rs. 157.53 per share within 1 or 2 weeks from its IPO listing price of Rs. 76 per share, showcasing around a 107 percent increase in stock price.
Now, the stock is trading near its all-time low of Rs. 56.18 per share. The decline in share price is related to the increase in competition from legacy automobile players like Bajaj Auto and TVS Motors. Further, Ather Energy and Ampere are surging through the intense competition in the EV Industry.
Problems in Service Center
Ola Electric has faced consistent problems in solving customer issues on their products, which has resulted in backlash from the public. Recently, they have received notices from the Central Consumer Protection Authority on violation of consumer rights.
Market Share & Jan 2025 Sales Update
The company’s market share as of January 2025 stood around 25.5 percent, followed by TVS Motor’s 24 percent and Bajaj Auto’s 22 percent.
The EV two-wheeler sales for the January 2025 month stood at 24,336 units. This is a 24.94 percent decline on a year-on-year basis from 32,424 units.
How does the Future hold for the company?
Ola Electric Mobility has come up with new models in the EV Motorcycle segment, which is the Roadster series to tap the largest 2W market segment. Further, the company announced product launches such as S1 Pro+, Ol Gig, Gig+, and S1 Z to tap new customer segments across personal and commercial mobility.
The company is building 4680 Bharat Cells, which would power their products from Q1FY26, thus reducing battery costs to improve margins.
Ola Plans for Profitability
The company plans to improve its profitability based on three key factors, such as Gross Margin improvement through Generation 3, in-house cell production, and vertical integration.
Followed by Operational cost optimization while investing in R&D Technology. Further introducing new products and entering into new segments. Ola Electric expects the Auto segment to be EBITDA breakeven at ~50,000 monthly deliveries.
Business Mix
The company earns the majority of its operational revenue from Automotive, which contributes around 99.71 percent, followed by 0.28 percent from Cell for the December 2024 quarter. The Operating Loss in both segments is increasing on a year-on-year basis.
About the Company
Ola Electric Mobility Limited, founded in 2017, specializes in manufacturing electric vehicles (EVs) and core components like battery packs and motors. It operates from its Futurefactory and has launched several models, including the Ola S1 series.
Financials
The company’s revenue from operations declined by 19.36 percent year on year from Rs. 1,296 Crores in Q2FY24 to Rs. 1,045 Crores in Q2FY25, accompanied by a loss of Rs. 376 Crores to a loss of Rs. 564 Crores.
Written by Santhosh S
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