New Delhi: Bhavish Aggarwal-run Ola Electrical shares nosedived additional on Monday, as market analysts warned retail traders to not go bullish on the inventory but, owing to its speculative valuation amid rising competitors.
The electrical car (EV) firm’s inventory closed at 108.15 apiece, a drop of two.56 per cent from its final buying and selling session. The share is down greater than 31 per cent from its current all-time excessive of 157.40.
The inventory market is bullish on the EV theme with Ola main within the two-wheeler phase, though its market share has been lowering amid robust competitors from rivals like TVS Motor and Bajaj Auto.
Santosh Meena, Head of Analysis, Swastika Investmart Ltd, mentioned that at present loss-making and buying and selling at excessive valuations, the market is optimistic about Ola’s future profitability.
“Nonetheless, the pace at which the corporate can flip worthwhile amid rising competitors might be essential. Whereas the expansion outlook stays sturdy, considerations over valuation and competitors imply solely aggressive traders ought to take into account staying invested,” Meena informed IANS.
Analysts cautioned traders, particularly given the corporate’s ongoing losses and the excessive volatility in its inventory value.
In keeping with them, the inventory worth is inflated and can additional right itself and traders with high-risk urge for food ought to solely go for it.
The electrical agency registered its lowest month-to-month gross sales this yr in August, dropping 34 per cent sequentially to 27,506, Ola Electrical’s market share dropped additional to 31 per cent final month.
Analysts mentioned it might be clever for traders to attend for a extra secure entry level on Ola Electrical.
Just lately, after the stunning Ola Electrical showroom hearth incident in Karnataka, the corporate’s social media platforms have been flooded with complaints about its EV scooters, as a number of prospects raised severe considerations about product high quality and repair. As per experiences, Ola Electrical receives round 80,000 complaints month-to-month, overwhelming its service centres. On peak days, complaints rise to six,000-7,000.
