Why is Ola Electric Mobility Share Price Falling?

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As per the recent price movements of Ola Electric Mobility shares, volume decreased by 4.33% from the previous day, while the shares gained 1.55% over the past week. They remain down 14.5% over the last month and have declined 57.22% year-to-date. The one-year return has dropped even more, to 61.84%, significantly underperforming the Sensex, which has gained 4.04% over the same period. The stock opened with a 2% gap, reached an intraday high of ₹38.78, but selling pressure remained high throughout the session, driving the price to an intraday low. This level represents a new low for the stock over the past year and throughout its trading history. 

The stock’s performance from the past few days also shows a reversal after three consecutive sessions of gains, indicating a shift in momentum. The price currently trades above its 5-day moving averages but remains below its 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a mixed technical outlook. This price movement underperformed the broader automobile sector, which registered a marginal positive return of 0.08%, and the Sensex, which declined by 0.58% on the same day. Despite this heightened activity, the stock price fell, reflecting a complex interplay of market forces and investor sentiment within the automobile sector. 

Key Reasons Behind Ola Electric Mobility Share Price Fall

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There are several reasons behind the Ola Electric Mobility Share Price Fall, such as a Sales Crash & Service Crises, High Competition, Legal & Regulatory Policies, Weak Financials, and a Sales & Demand Slowdown. 

• Sales Crash & Service Crises: Behind the share price fall, a significant reason, is that customers have faced long wait times, repair delays, and inconsistent spare-part availability. To fix this, Ola has now launched a major service reboot, deploying a 250-member rapid-response team across India. 
• Highly Competitive: Ola faces intense competition in the market, as many rivals like Bajaj and TVS have gained opportunities to survive in the automobile business with their advanced technology and the dynamic economic conditions prevailing, which is also a significant reason behind the Ola Electric Mobility share price fall. 
• Legal & Regulatory Policies: Ola Electric Mobility has faced insolvency allegations from a partner company, which has led to a decline in its share price. Any changes in government policies regarding automobiles and other modes of transport may also affect its share price. 
• Weak Financials: According to some sources, Ola Electric Mobility has weak financials, including negative EBITDA, high interest expenses, and a challenging balance sheet, which negatively impact investors’ decisions and contribute to the fall in Ola Electric Mobility’s share price. 
• Sales & Demand Slowdown: The company has seen significant declines in monthly vehicle sales, missing targets and signalling weaker demand in the EV market, which negatively impacts the Ola Electric Mobility share price and leads to a long-term share price fall.  

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Ola Electric Mobility: An Overview 

Ola Electric Mobility is an Indian electric vehicle manufacturer that also designs and manufactures electric two-wheelers, including the Ola S1 in three variants: Ola S1 Air, Ola S1X, and S1 Pro. Its manufacturing facility is located in Krishnagiri, Tamil Nadu. The company also produces battery cells at its manufacturing facility in Tamil Nadu, which supplies energy storage solutions for its vehicles and other applications. As of 2023, the company led the electric scooter market in India, with a 30% share. It also plans to launch its electric motorcycle models in 2025. The total revenue of Ola Electric Mobility is ₹5,009 crores. On 2nd August 2024, Ola Electric launched its initial public offering (IPO) and raised ₹5,500 crores. Existing investors, including founder Aggarwal, sold 84.9 million shares in the IPO. In September 2024, Aggarwal announced that Ola Electric will unveil its electric three-wheeler later that year. 

Ola Electric Mobility: Performance Analysis 

Ola Electric Mobility has shown poor long-term growth, with operating profit declining at an annual rate of -38.66% over the last 5 years. The company’s ability to service its debt is weak, with a poor EBIT-to-Interest (avg) ratio of -5.96. The net sales for 9M at ₹2,129 crores have declined by 52.22%, and the interest for 9M at ₹325.00 crores has grown by 33.20%. The stock is trading at a riskier valuation relative to its average historical levels. Over the past year, while the stock has returned -63.18%, its profits have fallen by -43%. According to some analysts, the 1-year share price target for Ola Electric Mobility ranges from ₹25.00 to ₹65.00. Despite this, the stock’s price declined by 3.82%, underperforming both its sector and the Sensex. 

Note: For live Ola Electric Mobility Share Price Target, visit the univest app and check the stock fundamentals.  

How have Ola Electric Mobility Shares Performed Recently?

The recent Ola Electric Mobility share price is ₹35.7. The stock opened at ₹37 and had closed at ₹37.4, the previous day. According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, Ola Electric’s share price has broken below its IPO base low of ₹76, indicating a bearish structure characterised by consistently lower highs and lower lows. They suggest that a post-IPO high of ₹157, the stock has been in a firm downtrend, and with the break below ₹76, the next key extension target is ₹34, expected in the coming weeks. The revenue from operations for the third quarter was ₹1,045 crores, down from ₹1,296 crores in the prior-year quarter. The year-to-date decline in Ola Electric shares is reported as 41.39%, with a 54.71% drop over the past six months. According to some analysts, the 1-year share price target for Ola Electric Mobility ranges from ₹25.00 to ₹65.00.

Is Ola Electric Mobility a Good Stock to Buy?    

Ola aims to deliver around 100,000 units in H2 FY26. The auto segment is expected to achieve 40% gross margins and 5% EBITDA by Q4 FY26. Also, Ola will continue investing in the battery segment to complete the 5.9 GWh Gigafactory, primarily funded by the State Bank of India. The company also plans to start the next phase of capacity expansion to 20 GWh in H1 FY27. Industry insiders believe the upcoming announcement could mark Ola Electric’s entry into the Battery Energy Storage Systems (BESS) space, so investors can analyse all these things before investing in the Ola Electric Mobility shares, as the automobile industry continues to evolve with increasing focus on electric mobility, Ola Electric Mobility remains a stock of interest due to its market presence and trading activity. 

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Ola Electric Mobility: Share Price Target 

Ola Electric (OLAELEC) share price targets vary from 2025 to 2030. Below is a table that shows the Ola Electric Share Price Target for these years.  

By 2025, Ola Electric is expected to gain solid traction due to the EV boom and government incentives. Experts suggest the Ola Electric share price target 2025 could range from ₹59.98 to ₹105.65. This prediction is fueled by Ola’s focus on domestic dominance and rising adoption of two-wheeler EVs.  

Note: For live Ola Electric Mobility Share Price Target, visit the univest app and check the stock fundamentals.  

Ola Electric Mobility: Future Outlook

 Despite its recent share price decline, Ola Electric Mobility’s future outlook is a complex balance of its inherent strengths, strategic growth initiatives, and various external and internal risks. 

• Moderate Growth: Analysts expect Ola Electric Mobility to grow its earnings at a rate of 34.58% per annum and revenue at a rate of 1.45% per annum over the next few years. This pace is relatively modest and signals a clear shift from its earlier high-growth phase. For a company that once delivered sharp gains, such forecasts suggest that future returns may be surplused. 
• Strategic Expansion: Ola Electric Mobility is aggressively expanding its core solar cell and module production footprint. Long-term guidance suggests a goal of reaching ~10-11 GW of integrated manufacturing capacity across cells and modules within the next few years. 
• Persistent Challenges: Ola Electric Mobility’s shares are declining due to market dynamics and overvaluation. Key challenges include its heavy reliance on government policies, growing competition from automobiles in the transport industry, regulatory uncertainties that affect revenue, and other factors.  
•  Strong Financial Performance: Ola Electric Mobility has shown consistent financial growth, with positive trends in sales and net profit over the recent years. Its Q4 FY25 results further demonstrate robust performance, with a record consolidated PAT and a recommended dividend.  

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Ola Electric Mobility: Analysts’ Rating

• The average 12-month price target is ₹78.00, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
• The analyst’s target range is observed between a high of ₹125.00 and a low of ₹35.78. 
• According to some analysts, some concerns remain with a ‘Reduce’ call of ₹35.78.
• The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama). 

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What is the Right Time to Buy Ola Electric Mobility?

According to analysts, the Ola Electric Mobility share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Ola Electric Mobility. There are some factors to consider before investing in Ola Electric Mobility Company shares.

• Strong Fundamentals: Investors should review Ola Electric Mobility Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.    
• Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   
• Growth in the Energy Sector: The company is well-positioned in the hospitality sector to deliver benefits to Ola Electric Mobility. This dominant sector increases demand and prices for the Ola Electric Mobility Company.
• Highly Volatile: Prices are highly volatile, so price changes significantly impact Ola Electric Mobility Company’s stock price. Investors must review the market structure before investing in Ola Electric Mobility shares. 

Conclusion

Ola Electric is not just a scooter brand; it’s aiming to be a tech-driven energy company. While investing in IPO-stage stocks always carries risk, long-term projections suggest strong growth potential. If you are planning to invest, it’s essential to monitor Ola’s execution, financial reports, and technology upgrades regularly. By 2024, India is expected to be one of the world’s largest EV markets. Analysts expect Ola Electric Mobility to grow its earnings at a rate of 34.58% per annum and revenue at a rate of 1.45% per annum over the next few years. This pace is relatively modest and signals a clear shift from its earlier high-growth phase. The year-to-date decline in Ola Electric shares is reported as 41.39%, with a 54.71% drop over the past six months. 

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FAQs

What are the key reasons behind the Ola Electric Mobility share price fall?

Ans. There are several reasons behind the Ola Electric Mobility Share Price Fall, such as a Sales Crash & Service Crises, High Competition, Legal & Regulatory Policies, Weak Financials, and a Sales & Demand Slowdown. Ola faces intense competition in the market, as many rivals such as Bajaj and TVS have gained opportunities to survive in the automotive industry due to their advanced technology. 

What is Ola Electric Mobility’s share price target?

Ans. Over the past year, while the stock has returned -63.18%, its profits have fallen by -43%. According to some analysts, the 1-year share price target for Ola Electric Mobility ranges from ₹25.00 to ₹65.00. Despite this, the stock’s price declined by 3.82%, underperforming both its sector and the Sensex. By 2025, Ola Electric is expected to gain solid traction due to the EV boom and government incentives. Experts suggest the Ola Electric share price target 2025 could range from ₹59.98 to ₹105.65.

What are the factors that affect Ola Electric Mobility’s share price?

Ans. According to analysts, the Ola Electric Mobility share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Ola Electric Mobility. There are some factors to consider before investing in Ola Electric Mobility Company shares.  Prices are highly volatile, so price changes significantly impact Ola Electric Mobility Company’s stock price.

What are the future anticipations of Ola Electric Mobility’s share price?

Ans. Despite its recent share price decline, Ola Electric Mobility’s future outlook is a complex balance of its inherent strengths, strategic growth initiatives, and various external and internal risks. Analysts expect Ola Electric Mobility to grow its earnings at a rate of 34.58% per annum and revenue at a rate of 1.45% per annum over the next few years. This pace is relatively modest and signals a clear shift from its earlier high-growth phase.   

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