Shillong, September 4: Ola Electric shares continued to slide on Wednesday — its sixth consecutive session of decline – as its stock lost more than 30 per cent from its recent all-time peak of Rs 157.40 apiece.
The Bhavish Aggarwal-run company’s stock dropped 3 per cent to Rs 110 per share. It was, however, still up 45 per cent from its initial public offering (IPO) price of Rs 76 apiece.
Market experts said that the company’s stock is not looking good and can even slip further from the current Rs 110 level over the near term. There are concerns as current valuation of the EV firm appears to be quite speculative.
Moreover, its rivals like TVS Motor and Bajaj Auto have extended their market share by launching more affordable electric two-wheelers. Hero MotoCorp also plans to launch its Vida EV motorcycle at a more affordable price point in rising competition in the electric 2W space.
According to market watchers, for new investors, it may be wise to wait for a more stable entry point or consider the stock as a long-term play with a high risk-reward ratio.
Ola Electric registered its lowest monthly sales this year, dropping 34 per cent sequentially to 27,506 units in August, as its market share nosedived further to 31 per cent.
The company’s retail sales of 27,506 units are lowest in the calendar year to date, down by 34 per cent compared to 41,711 units it sold in July.
Its stock made a muted market debut on August 9 but saw a strong buying after the listing. At present, the scrip has been under selling pressure after scaling lifetime high.
According to analysts, the stock value is inflated and will further correct itself and investors with high-risk appetite should only go for it.
They cautioned investors, especially given the company’s ongoing losses and the high volatility in its stock price. (IANS)