Electric Wave Ltd. shares fell 3.5% in trading hours on Tuesday, falling below the IPO price of Rs 76 for the first time since its listing on August 9. The stock touched an intraday low of Rs 74.84 on NSE before closing at Rs 76.64. At the same time, the stock has fallen 23% in the last month. Let us tell you that Ola Electric Mobility had a cold start in the market, it was trading in the upper band of the issue price at Rs 76. However, the stock soon recovered, touching the upper 20% circuit in the following days and reaching a record high of Rs 157.40 on August 20. However, after that the stock price fell sharply. The reason for this was a lot of negative news about the company’s poor service. On Tuesday, the company’s market capitalization decreased from Rs 69,000 crore to Rs 33,804.60 in two months.
HSBC had earlier reduced the price target.
On Ola Electric, global brokerage firm HSBC first reduced the target price on Ola Electric shares from Rs 140 to Rs 110. At the same time, Kotak Institutional Equities believes that Ola Electric is well positioned to capitalize on the growth opportunity of electric vehicles, given the growing trend of adoption of electric two-wheelers, focusing on exclusive models of electric vehicles and end-to-end mobility. extreme. The bottom line is driven by integration, which will support margin growth. This integration allows the company to apply aggressive pricing strategies, which can help it scale its operations more quickly. Despite this, Kotak considered the stock to be fairly valued given concerns about a possible loss of market share due to competition and service quality issues. The brokerage has given a ‘Reduce’ rating on the stock with a target price of ₹80, higher than its current trading price.
And now what?
Market experts claim that the Indian stock market is currently in a downward trend. Due to this, sales are observed in stocks in all sectors. Auto stocks are getting hit hard. This includes stocks of big companies like Maruti, Tata, Mahindra, Bajaj, Hero. Its effect can also be seen in Ola’s stock. The stock may fall further in the coming days. Therefore, investors should still invest in this stock with caution.
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