Ola Electric Mobility
In the last one month, the shares of Ola Electric Mobility Limited (Ola Electric) have gained amazing momentum in the stock market. Within just 30 days, this stock has given a bumper return of about 74 percent to the investors. If you compare it with its 52-week low of Rs 22.25, then this stock has jumped 82 percent so far. Seeing this strong rise, only one question is arising in the minds of the investors, should they board this running train now, lock in the profits and leave, or is it wiser to hold on to the old shares?
Ola in ‘monitoring’ the stock market
When there are huge fluctuations in a stock in a short period of time, market regulators become alert. This is the reason why Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have put Ola Electric under the short-term ASM (Additional Surveillance Major) framework. You can understand this in this way that the stock is currently kept under ‘strict surveillance’ so that retail investors can be protected from any major loss. Going into ASM does not always mean that the stock will fall, but it is a clear indication that it may be more risky to bet in it now.
Will the new battery provide speed or will we have to wait?
Ola Electric is not only selling vehicles, but it is also betting heavily on its battery technology. Recently the company has launched its new S1 X+ 5.2 Kwh model in the market, in which 4680 Bharat cells have been used. Apart from this, the company has also given important information about its in-house prepared LFP (Lithium Iron Phosphate) cell. This new 46100 format LFP cell is said to be larger in size and more economical in cost than the existing battery technology. If it gets the green signal from the regulator, then it can be seen in Ola’s scooters from the next quarter. The news of this innovation has made the mood of investors positive regarding the company in the stock market.
The future of the company depends on service quality and results
Kranti Bathini, Equity Strategist, Wealthmills Securities, believes that the news of battery manufacturing may have brought life to the stock, but the real test will be from the financial results of the company. Investors who have the ability to take higher risks can consider investing in this stock for short or medium term. However, the real challenge of the company is its ‘after sales service’ i.e. service after the vehicles are sold. Today’s customer is very sensitive towards service and the speed of adoption of electric vehicles will also depend on this. If Ola wants to maintain its momentum, it will have to resolve customer complaints quickly. Only the financial results of the coming two quarters will decide the long-term direction of this stock.
Flying beyond ₹42, ₹32 will become support
Looking at the technical charts, Angel One analyst Osho Krishnan advises that it is better to be a little cautious at the current price. If the stock manages to cross the important level of Rs 42 and stay above it, then fresh buying may come in and it may touch the level of Rs 50. On the other hand, if profit-booking dominates the market, then the level of Rs 35 will act as a strong support on the downside. If this level is also broken, then the stock can get another big support at the price of Rs 32. Currently the share is trading at 40.82.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
