Ola Electric shares saw a rise of over 3% on Monday following HSBC Global Research maintaining its ‘Buy’ rating on the electric two-wheeler maker, though the target price was revised downwards to ₹110 from the previous ₹140.
As of 9:34 AM shares were trading 2.52% higher at ₹79.24
Despite the lower target price, HSBC’s revised figure still represents a 42% upside from the stock’s last closing price of ₹77.32 on Friday. Analysts from HSBC noted service quality improvements at Ola Electric’s service centres, with backlogs reducing by 20-30% month-on-month. Vehicle outflow slightly exceeded inflow, reflecting gradual progress at the service centres. However, analysts cautioned that full normalisation may take more time.
Ola Electric has also increased its technician workforce and is working with external consultants from E&Y to further improve service station operations. The company is scouting for locations to establish new, larger service centres.
The improvements in service infrastructure, combined with Ola Electric’s growth strategy, continue to bolster investor confidence in the stock.
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