Ola Electric Mobility Ltd. (Ola Electric) witnessed a sharp rise of 12.95% in its stock price today, reaching ₹82.93, following Citi Research’s ‘Buy’ initiation with a target price of ₹90. Citi’s report highlighted Ola’s leadership in India’s electric two-wheeler (E2W) market, with a ~38% market share (FY25 YTD), robust R&D efforts, and plans for future product launches.
Key Market Highlights:
- Previous Close: ₹73.42
- Day Range: ₹75.26 – ₹84.00
- Current Market Price (CMP): ₹82.93
- Market Cap: ₹346.27 billion
Citi’s Investment Thesis:
Citi’s positive outlook on Ola Electric is based on:
- Dominant Market Share: Largest E2W player in India with a strong foothold.
- Expanding Product Portfolio: Launch of new motorcycles and electric three-wheelers (E3Ws) in the pipeline.
- Technological Edge: Vertical integration, including Li-ion cell manufacturing, which boosts profitability potential.
- Premium Positioning: Valuation based on 4x FY26E EV/Sales, reflecting a premium over its peers.
Challenges Identified by Citi:
- Weak EV penetration in India compared to global standards.
- Intense competition in the E2W market.
- Consumer perception of service quality and technology obsolescence risks.
TOPICS:
Ola