New Delhi, September 23: Bhavish Aggarwal-run Ola Electric shares nosedived further on Monday, as market analysts warned retail investors not to go bullish on the stock yet, owing to its speculative valuation amid rising competition. The electric vehicle (EV) company’s stock closed at 108.15 apiece, a drop of 2.56 per cent from its last trading session. The share is down more than 31 per cent from its recent all-time high of 157.40.
The stock market is bullish on the EV theme with Ola leading in the two-wheeler segment, although its market share has been decreasing amid tough competition from rivals like TVS Motor and Bajaj Auto. Santosh Meena, Head of Research, Swastika Investmart Ltd, said that currently loss-making and trading at high valuations, the market is optimistic about Ola’s future profitability. Bhavish Aggarwal Slammed for Poor Ola E-Scooter Quality As He Meets With Minister Ashwini Vaishnaw To Show New India-Made Lithium Battery Cell.
“However, the speed at which the company can turn profitable amid rising competition will be crucial. While the growth outlook remains strong, concerns over valuation and competition mean only aggressive investors should consider staying invested,” Meena told IANS. Analysts cautioned investors, especially given the company’s ongoing losses and the high volatility in its stock price.
According to them, the stock value is inflated and will further correct itself and investors with high-risk appetite should only go for it. The electric firm registered its lowest monthly sales this year in August, dropping 34 per cent sequentially to 27,506, Ola Electric’s market share dropped further to 31 per cent last month. Analysts said it may be wise for investors to wait for a more stable entry point on Ola Electric. Ola Electric Shares Surge 10% Hits Upper Circuit Limit.
Recently, after the shocking Ola Electric showroom fire incident in Karnataka, the company’s social media platforms were flooded with complaints about its EV scooters, as several customers raised serious concerns about product quality and service. As per reports, Ola Electric receives around 80,000 complaints monthly, overwhelming its service centres. On peak days, complaints rise to 6,000-7,000.
(The above story first appeared on LatestLY on Sep 23, 2024 05:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
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