Ola Electric Mobility’s share price gained 6% after it announced a significant expansion of its retail footprint.
The electric two-wheeler (E2W) maker increased its network to 4,000 stores nationwide, a fourfold jump from its previous count. This includes the addition of 3,200 new stores integrated with service facilities. The company aims to enhance electric vehicle (EV) adoption by extending its reach beyond tier-1 and tier-2 cities to smaller towns and tehsils across India.
The stock hit an intraday high of Rs 99.90 on Thursday, reflecting a 6.22% increase. It was last seen trading 1.78% higher at Rs 95.72, marking a 30.41% gain over the past month. However, the company’s shares pared some gains and were trading 1.84% higher at Rs 95.78 on the BSE.
Despite the stock’s upward momentum, the company has faced regulatory scrutiny.
Earlier this month, Ola Electric received a showcause notice from the Central Consumer Protection Authority (CCPA) for additional documents regarding its handling of consumer complaints.
WHAT’S NEXT FOR OLA ELECTRIC?
Market analysts offered mixed views on the stock’s outlook.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, told Business Today that the the stock is currently in an uptrend after hitting its all-time low of Rs 66.60. “Investors with a high-risk appetite can consider adding it for a one-year horizon,” Bathini told the publication.
Technically, the stock has support in the Rs 92–Rs 80 range, with a potential upside of Rs 100–Rs 110.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, stated, “The overall structure on daily charts is not strong. Buying around Rs 85 could offer an upside target of Rs 100, with a stop loss at Rs 80.”
Ola Electric, founded in 2017, specialises in manufacturing electric vehicles and their key components, including battery packs and motors, at its Ola Futurefactory. Promoters held a 36.78% stake in the company as of September 2024.