Ola Electric’s stock has surged 92% from its initial listing price of Rs 76, reaching a record high of Rs 146.38 today. The surge marks a significant milestone since the company’s public debut on August 9, 2024, driven by strong trading volumes in Ola Electric shares.
The rally follows the company’s announcement on August 15, which introduced several new products, including the highly anticipated ‘Roadster’ motorbike. In addition to the new product lineup, Ola Electric outlined an ambitious future roadmap spanning its electric vehicle (EV) and energy sectors.
Adding to the positive momentum, HSBC has initiated coverage on Ola Electric with a Buy rating. The brokerage firm has set a target price of Rs 140 per share, despite expressing a conservative view on the overall EV penetration in India and other market uncertainties.
HSBC’s endorsement highlights several key factors that support the investment case for Ola Electric. The firm notes that sustained regulatory support for the EV sector, Ola’s effective cost reduction strategies, and the promising risk-reward profile of its battery venture all contribute to the company’s investment appeal.
However, HSBC also outlines potential risks, including the slower-than-expected adoption of electric two-wheelers and ongoing challenges with the battery plant. These factors could impact the company’s growth trajectory in the near term.
