BofA Securities has initiated coverage on Ola Electric shares with a “Buy” recommendation and set a target price of Rs 145 per share, which represents a 35% upside from the stock’s previous close of Rs 107.
Ola Electric, India’s largest electric two-wheeler company, commands a significant market share of 40%. This dominant position is expected to strengthen further as electric scooters are now competitively priced even below their petrol counterparts. This pricing shift is anticipated to be a critical inflection point in the electric vehicle (EV) adoption curve.
BofA Securities highlights several key factors underpinning its positive outlook on Ola Electric:
Market Leadership: Ola Electric’s strong market position and its substantial share in the electric two-wheeler segment.
Pricing Advantage: The strategic pricing of e-scooters below traditional petrol scooters, which is expected to accelerate the adoption of electric vehicles.
Product Portfolio: The company has successfully addressed crucial aspects of the EV ecosystem with its proven and expanding product range.
Future Penetration: BofA forecasts that electric vehicles will achieve an 18% penetration rate in the two-wheeler market by FY28, and a 25% penetration rate by FY30.
