Olectra Greentech shares jump 20% after unveiling hydrogen bus in partnership with Reliance
Shares of Olectra Greentech rose sharply in Friday’s trade after the company announced its hydrogen bus in technical partnership with Reliance Industries. The stock jumped 20 per cent to hit an upper price band of Rs 482.45 over its previous close of Rs 402.05. Around 2.68 lakh shares changed hands today on BSE, which was more than five times higher compared to Olectra’s two-week average volume of 50,000 shares. Turnover on the counter stood at Rs 12.30 crore, commanding a market capitalisation (m-cap) of Rs 3,921 crore.
At today’s high price of Rs 482.45, the stock has surged 28.88 per cent from its 52-week low of Rs 374.35, hit in the previous session. That said, The counter has declined 19.16 per cent in the last six months and 7.63 per cent on a year-to-date (YTD) basis. Olectra Greentech is a subsidiary of Megha Engineering and Infrastructures.
Olectra, in an exchange filing, said, “The Hydrogen bus is a fully carbon-free alternative to traditional public transportation. In the wake of the depletion of natural resources and the negative impacts of air pollution and emissions, 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 also said that the 12-metre low-floor bus has a customisable seating capacity of 32-49 passenger seats along with one driver seat.
“A single hydrogen fill allows the bus to travel up to 400 km. Hydrogen for this range coverage takes just about 15 minutes. It generates only water as tailpipe emissions. When it comes to the system, type-4 hydrogen cylinders are established on the top of the bus. Moreover, the cylinders can withstand temperatures between -20 and +85 degrees Celsius,” Olectra added.
The company aims to commercially launch hydrogen buses within a year.
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 and 20-day moving averages but lower than 50-day, 100- and 200-day moving averages. The counter’s 14-day RSI came at 56.18. A level below 30 is defined as oversold while a value above 70 is considered overbought. The stock has a P/E ratio of 54.67. The company’s Earnings Per Share (EPS) came at 7.35, lower than the P/E ratio.
Olectra has a one-year beta of 0.91, indicating low volatility on the counter.
Meanwhile, Indian equity benchmarks traded lower in afternoon deals, dragged by consumer goods, technology, automobile and metal stocks. And, index heavyweight Reliance shares edged 0.17 per cent higher to trade at Rs 2,371.65.
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