Olectra Greentech shares halt 2-day fall, surge 9% today; here’s why

Shares of Olectra Greentech Ltd jumped in Thursday’s trade, pausing their losing run of two straight sessions. The stock soared 8.65 per cent to hit a day high of Rs 539.90 over its previous close of Rs 496.90. Fresh gains on the counter came after Olectra announced that the company’s heavy-duty electric tipper has received the country’s first homologation certificate from the Indian automobile regulatory agencies. “The electric tipper is now roadworthy, adhering to all the Central Motor Vehicles Rules,” the company added.

Olectra said the e-tipper can be used day and night at work sites as it is silent and has zero carbon emissions.

“The Olectra e-tipper is India’s first certified heavy-duty electric tipper engineered and manufactured in-house. We showcased the prototype at recent exhibitions in Delhi and Bangalore, which created great curiosity and enthusiasm. The first order for 20 e-tippers is in the final stage of discussions. We are shortly going to launch variants of the e-tipper and electric truck,” said KV Pradeep, Olectra Greentech Chairman and Managing Director.

Prior to this development, Olectra also unveiled its hydrogen bus in technical partnership with Reliance Industries. “Olectra has taken the initiative to accelerate the development of Hydrogen-powered buses. This initiative will help out the government to achieve its carbon-free hydrogen ambitions,” the company stated.

Olectra Greentech’s stock has jumped 18.17 per cent in past five days. The counter has climbed 2.19 per cent on a year-to-date (YTD) basis. Around 1 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 2.49 lakh shares. Turnover on the counter stood at Rs 5.27 crore, commanding a market capitalisation (m-cap) of Rs 4,356.85 crore.

On the earnings front, Olectra Greentech reported a 4 per cent increase in standalone net profit for the December 2022 quarter (Q3 FY23), at Rs 13 crore, as compared to Rs 12.50 crore in the same period a year ago.

The stock was last seen trading higher than 5-day, 20-, 50- and 100-day moving averages but lower than 200-day moving averages. The counter’s 14-day RSI came at 62.63. A level below 30 is defined as oversold while a value above 70 is considered overbought. The stock has a P/E ratio of 67.57. The company’s Earnings Per Share (EPS) came at 7.35, lower than the P/E ratio.

Olectra has a one-year beta of 0.93, indicating low volatility on the counter.

The company is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL) and manufactures electric buses in India. Olectra is also India’s largest silicone rubber/composite insulators manufacturer for power transmission and distribution networks.

Meanwhile, Indian equity benchmarks fell sharply in early trade today, dragged by technology, consumer goods and automobile stocks.

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