Now Reading: Ola Electric faces broker sell calls after weak Q1 volumes, cash burn
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Ola Electric faces broker sell calls after weak Q1 volumes, cash burn
Ola Electric faces broker sell calls after weak Q1 volumes, cash burn
Six brokerages have a 'Sell' rating on Ola Electric after Q1 results showed weak volumes, lower average selling prices and continued cash burn. Kotak, Citi and Emkay Global retained their 'Sell' calls,…
The Story in Brief
Six brokerages have a 'Sell' rating on Ola Electric after Q1 results showed weak volumes, lower average selling prices and continued cash burn. Kotak, Citi and Emkay Global retained their 'Sell' calls, while Goldman Sachs gave a 'Neutral' rating. Emkay warned that rising competition from TVS, Bajaj and Ather's new plant will hurt market share.
Ola Electric's Q1 net loss narrowed to Rs 336 crore from Rs 426 crore a year ago, but revenue fell 45 per cent to Rs 455 crore. Deliveries rose 94 per cent quarter-on-quarter to 39,192 units, while its EV market share increased to 8.4 per cent. Goldman Sachs set a target price of Rs 40, while Bloomberg consensus is Rs 31.25, implying 24 per cent downside.
The Indian Opinion
The narrative from Ola's management is that volumes are recovering and costs are falling. Yet on its own numbers, revenue is down 45 per cent year-on-year and gross margins have slipped. Of the 39,192 deliveries, most were cheaper models, dragging the average selling price. Brokerages see a long fight ahead. The real test will come when Ather's new plant opens next quarter and Bajaj, TVS push harder. Can Ola reclaim double-digit market share without burning more cash? The market is betting it cannot.
Sources (3): ndtvprofit.com, businesstoday.in, inc42.com
This story was synthesised by AI from the 3 sources linked above.
