Mumbai, Dec 05: Shares of Ola Electric Mobility Ltd. fell sharply on Friday, continuing their downward trajectory after hitting an all time low on Thursday. The stock traded at Rs 34.80, less than half of its IPO price of Rs 76 per share in August 2024, marking a historic low since listing. The scrip had closed at Rs 36.12 on Thursday.
This decline comes even as the Nifty Auto index has gained momentum over the past year, highlighting Ola Electric’s underperformance relative to the sector. The company’s stock has plunged over 64% from its 52-week high, reflecting investor concerns over operational and market challenges.
Ola Electric’s retail sales have dipped, allowing competitors such as TVS Motor, Bajaj Auto, and Ather Energy to gain significant market share. Persistent issues with service backlogs, spare-part shortages, and customer complaints have further dampened market sentiment.
Founder Bhavish Aggarwal has reportedly taken personal oversight of efforts to improve service quality and reduce customer wait times, but the initiatives have yet to boost investor confidence or stock performance.
As of 10:35 a.m. on Friday, Ola Electric shares were trading 2.16% lower at Rs 35.80, compared with a 0.10% rise in the NSE Nifty 50 Index. The stock has declined 58.71% year to date, with a traded volume 15.78 times its 30 day average and a relative strength index of 41.57.
Of eight analysts covering the company, three recommend a ‘buy,’ one suggests ‘hold,’ and four advise ‘sell,’ with the average 12-month price target implying a 29.1% upside, according to Bloomberg data.