After a 60% rally, can Ola Electric shares extend gains following 20% ​​MoM sales growth in April?

In a remarkable turnaround, shares of Ola Electric traded at Rs. Up more than 60% in a month after hitting an all-time low of 22.25. Following a 20% month-on-month rise in April sales figures, its shares may once again come into focus when stock markets resume trading on Monday after an extended weekend.

The electric two-wheeler maker recorded vehicle registrations at 12,166 units, up from 10,133 units in March, according to VAHAN data. This represents a 20% month-on-month increase, building on the recovery momentum seen in March.

The company said in a filing to the exchange on Friday that its performance was outstanding in a month when the broader electric two-wheeler industry declined over 22% MoM. “Ola Electric was the only leading EV two-wheeler brand to post month-on-month growth in April, reflecting improved consumer confidence, stabilizing operations and continued demand for its expanding EV portfolio,” a company statement said.

“March marked a strong recovery for Ola Electric, and April has continued that momentum. Registrations grew by 20% month-on-month despite a sharp decline in the market, making Ola the only leading EV two-wheeler brand to grow in April. This reflects strong execution, stabilizing operations and a 48 percent customer growth in commercialization. Bharat Sales has increased cost efficiency along with customer benefits, we look forward to building on this momentum and the next phase of EV penetration in India. Focused on execution,” the company’s statement added.

The increase in Ola’s registration comes at a time when oil prices are moving closer to the $111.57 per barrel mark. Today, they were up $1.17, or 1.06% from last close.

Expert takes

Kranti Bathini, director of equity strategy at WealthMills Securities, said the recent pullback in Ola’s share price is partly sentimental due to concerns over rising crude oil prices and global supply issues. As long as there is uncertainty about the Iran-Israel or US conflict, the rally is expected to continue based on April figures and a possible increase in future bookings.

According to him, Ola Electric has a long way to go to regain the confidence of consumers and investors. He considers it suitable for investors with high risk appetite.

The analyst also said that EV adoption in India is very slow and below expectations, and how Ola will increase its market share remains largely monitorable.

The current market price on NSE is Rs. 36.56, Ola shares traded at their Rs. 76 is 52% below the issue price.

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times.)