Kotak Institutional Equities downgraded the inventory to ‘Promote’ and reduce its value goal to ₹30 from ₹50 earlier, implying a draw back of 41% over Friday’s closing value of ₹50.85.
“The previous couple of quarters’ efficiency has been marred by a weaker quantity print and rising guarantee provisions, which weighed on profitability,” stated the brokerage.
“With a deteriorating steadiness sheet, the corporate must scale up its volumes to cut back money outflow.”
Ola’s losses widened from ₹564 crore within the December quarter to ₹870 crore in March, whereas income from operations fell by 41.5% on this interval.
“Ola Electrical’s fourth quarter outcomes mirror a pointy deterioration in its key monetary metrics, underscoring deep-rooted operational and strategic issues,” stated Sagar Shetty, analysis analyst, StoxBox. “These challenges are additional exacerbated by intensifying competitors within the EV two-wheeler area, as legacy gamers aggressively scale up and consolidate market share.”In Could, TVS and Bajaj Auto have already crossed Ola by way of electrical two-wheeler gross sales, as per Vahan knowledge.
BusinessesShetty stated the near-term outlook for the inventory is clouded as a result of “client confidence within the firm seems to be undermined by ongoing issues surrounding the corporate’s gross sales reporting practices and client providers points”.
Ola Electrical bought listed in August final 12 months. The IPO was priced at ₹76. The inventory hit an all-time excessive of ₹157.4 quickly after the itemizing.
Brokerage Goldman Sachs stays bullish on the inventory, with a ‘Purchase’ ranking, whereas slicing its value goal from ₹75 to ₹70, implying 38% upside from right here.
“We view the present valuation ranges as engaging, given the pure-play EV publicity and excessive development potential forward,” stated the Goldman notice.
The brokerage stated catalysts for the inventory embrace electrical motorbike launches, electrical three-wheeler launches, enchancment in cell manufacturing yields and PLI (production-linked incentive) certification on steadiness merchandise.
Shetty has cautioned traders in opposition to shopping for the inventory for now and to attend for clear, sustained enhancements within the firm’s monetary efficiency in upcoming quarters.
