At its peak, the valuation of the company was higher than that of Elon Musk's Wall Street-listed Tesla.
The stock got listed in August, and has already been a roller-coaster ride for the investors, as a few days later, amid some profit booking, the shares faced significant pressure, falling by 22% in 5 consecutive trading sessions.
Ola Electric Mobility shares had been on a losing streak over the past few sessions but surged 7.7% during today’s intraday session.
Additionally, the end date for the anchor lock-in period for 50% of the company’s shares (which is around 18.18 crore shares, comprising of 4% of the total outstanding shares of the company, according to a report by domestic brokerage firm Nuvama) is tomorrow i.e. September 6, 2024.
Even with the limited price history, domestic brokerage firm Anand Rathi believes that there is a 54% potential upside in the stock as they have a target price of INR 170 for the counter.
“Although, we don’t have much of a price history for the stock but for a short term the stock looks oversold. Even the fundamentals suggest that the stock has great potential,” said the domestic brokerage firm in its report.
With this, Anand Rathi advised the traders to go long in the stock between INR 107.5 – 112.5 level with a stop loss of INR 95 and for the upside target of INR 140 in the coming months.
A short while after its listing, global brokerage firm HSBC had also initiated coverage on the company with a target price of INR 140.
"We use a DCF methodology to value Ola Electric. We use a WACC of 10.0% and a long-term growth rate of 7.5%. Our target price implies FY28e price/sales of 2.9x and an EV/EBITDA of 39x. We also provide a sensitivity matrix to gauge the sensitivity of Ola’s valuation to different parameters. On ESG, Ola’s Future factory is all women with capacity for 20,000 employees," said HSBC's Yogesh Aggarwal.
For the first quarter ended June 2024, the company reported a 32% YoY jump in its revenue, however the loss for the quarter has widened to INR 347 crore, from a loss of INR 267 crore for the corresponding quarter of the previous year.
In the last 2 weeks, the stock has gone down by 11.84% and was trading 6.86% higher at INR 118.35 around 3 pm on BSE.
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