Ola Electric Share: Ola Electric shares opened higher for the second consecutive day on Tuesday, July 15. Surprisingly, the company showed a loss of ₹ 428 crore in the first quarter of this year (April-June). Still investors are happy.
Ola Electric shares opened higher for the second consecutive day on Tuesday, July 15. Surprisingly, the company showed a loss of ₹ 428 crore in the first quarter of this year (April-June). Still investors are happy, as this loss has reduced as compared to the previous quarter (January-March). Let us tell you that since its IPO in August 2024, Ola Electric shares have seen volatility. The stock fell 72% from its record high to an all-time low of ₹ 43.16 on NSE.
Why is improvement in loss important
The loss in the last quarter was ₹ 870 crores, which has now come down to ₹ 428 crores. In the June quarter, the company’s revenue increased to ₹ 828 crores, which is more than ₹ 611 crores in the March quarter. For the first time in June, the company reached a profitable (EBITDA positive) position. Gross margin was also a record 25.6%.
Why did investors’ confidence increase?
According to Harshal Dasani, market expert of INVasset PMS, the effect of efficient management is visible on Ola. He says, “Generation-3 models, control over expenses through project ‘Target’ and the company’s integrated working style increased the margin.”
Future strategy: Ola has set a target of selling 3.25-3.75 lakh vehicles and revenue of ₹ 4200-4700 crores for this year.
Government support: Margins are expected to reach 35-40% from the second quarter due to the production-linked subsidy (PLI).
New technology: ‘Rare-earth-free’ motors ease supply chain concerns, giving a boost to the ‘Make in India’ plan.
How much did the shares rise?
Shares rose to ₹ 48.88 in early trade today. Ola jumped 4% during this period. Shares rose 18% after the company’s results were announced. The total jump in two days was 22%. However, shares are still well below last year’s peak.
What is the way forward?
According to experts, the company is slowly moving on the path of profit. The market has incorporated this possibility in the price. More than the immediate loss, investors are expressing confidence in Ola’s plans and management efficiency.
(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own and not of businessleague. Here only stock performance information is given, it is not an investment advice. Investment in the stock market is subject to risks and consult your advisor before investing.)
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