HSBC has maintained a Buy rating on Ola Electric but has reduced the target price from ₹140 to ₹110, suggesting a potential upside of approximately 42% from the current market price of ₹77.50.
Key Insights from HSBC’s Report
- Service Station Improvements: HSBC revisited Ola’s service stations, noting improvements, though it may take more time for conditions to fully normalize.
- Focus on Service and Product Quality: Ola Electric is implementing several initiatives to enhance service quality, though HSBC highlights the need for a sustained focus on long-term product quality.
- Lower Target Due to Slower Market Penetration: The brokerage reduced its estimates and target price due to slower-than-expected electric two-wheeler (e2W) market penetration and ongoing service-related issues.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.
