From their peak, Ola Electric Mobility Ltd.’s stock has more than halved. On Monday, the stock closed at Rs 77.67, up 0.45%. At this closing price, it has dropped 50.70 per cent from its August 20, 2024, record high of Rs 157.53.
After the Central Customer Protection Authority (CCPA) issued a show cause notice, the Centre stepped up its investigation into Ola Electric’s customer complaint processing practices. According to individuals who spoke to Business Today TV, part of this investigation involves plans to carry out independent sampling to assess the veracity of Ola Electric’s assertion that it has addressed 99% of customer concerns.
According to one of the individuals, “We want to be sure if Ola Electric’s claim of resolving 99 per cent problems is true.” The business, run by Bhavish Aggarwal, said last week that 99.1% of complaints had been satisfactorily addressed. The manufacturer of electric two-wheelers has been dealing with several service-related problems.
In a different development, the pureplay EV company unveiled its NVIDIA Omniverse-integrated Ola Digital Twin Platform. Ola Electric claimed to have accelerated its time to market from design to commissioning for manufacturing operations at its Futurefactory by more than 20% by using the platform.
“Those who are willing to take on a lot of risk can hang onto the stock. According to WealthMills Securities’ Director of Equity Strategy Kranthi Bathini, “One can also think about entering at current levels, but only with a long-term view.”
The company’s September quarter earnings will be widely monitored, according to the market analyst. “Ola Electric has increased its market share, but with the recent social media outrage over service-related difficulties, breakeven and profitability are the crucial metrics that will be actively monitored. “From a medium- to short-term perspective, the stock will continue to remain weak,” Bathini said.
“The stock is still in a ‘no-trade’ zone and is technically in a bad position. Until a more distinct pattern appears, investors are encouraged to hold off,” stated Ameya Ranadive CMT CFTe, Senior Technical Analyst at StoxBox. On the charts, Ola Electric’s stock appeared poor. According to Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, the stock may decline around the Rs 70 mark.
Ola Electric is a pure-play electric vehicle manufacturer that was founded in 2017. At its Ola Futurefactory, it mainly produces electric cars and some of its essential parts, including motors, battery packs, and vehicle chassis. Promoters owned 36.78 per cent of the E2W player as of September 2024.
