HSBC has maintained its ‘Buy’ call on Ola Electric, setting a target price of ₹140/share, offering a potential upside of 35.9% from the current price of ₹103.02/share. Despite recent concerns, the brokerage remains optimistic about the company’s long-term prospects.
HSBC noted that many of Ola Electric’s service stations are reportedly overwhelmed by the high number of service requests. However, the company is said to be undergoing multiple initiatives to address this situation. HSBC positively highlighted that many of these issues seem transitory and are expected to be resolved in the near term.
The report also emphasized the importance of improving service quality ahead of the critical launch of Ola Electric’s motorcycle lineup. According to HSBC, ensuring robust service infrastructure is vital for the brand’s expansion into the competitive motorcycle segment.
While there are operational challenges, HSBC believes the company’s efforts to improve its service experience could bolster consumer confidence and support long-term growth, reaffirming their bullish stance on the stock.
