Ola Electric’s stock soared by 5% after Citi Research initiated coverage with a ‘Buy’ rating, setting a target price of ₹90. Citi’s report underscores Ola’s dominant position in India’s electric two-wheeler (E2W) market, commanding an impressive ~38% market share in FY25 YTD.
Key Drivers Behind Citi’s Optimism:
- Market Leadership: Ola Electric holds the top spot in India’s E2W segment, a rapidly growing market.
- Expanding Portfolio: Plans to launch new electric motorcycles and three-wheelers (E3Ws) indicate robust growth potential.
- Technological Edge: Vertical integration, including Li-ion cell manufacturing, enhances cost efficiency and boosts profitability.
- Premium Valuation: Citi values the company at 4x FY26E EV/Sales, reflecting confidence in its growth trajectory.
Challenges to Watch:
Citi highlights that India’s EV penetration remains low compared to global benchmarks. Additionally, stiff competition in the E2W market and consumer concerns around service quality and technology durability could pose risks.
Stock Performance
Ola Electric opened at ₹90.65, reached a high of ₹93.60, and dipped to a low of ₹88.77 during the day.
As of 9:36 am, Ola Electric shares were trading 5.44% higher at Rs 92.89 on the NSE.
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