Ola Electric Share Price Jumps 4% Following PLI Nod For Gen 3 Scooters

Ola Electric Mobility Ltd. share price recorded third straight session of gains as it spiked nearly 4% on Thursday following the company getting PLI Nod for its Gen 3 scooter portfolio on Tuesday. In a statement, the company said it is eligible for benefits under the government's Production Linked Incentive (PLI) scheme for its top selling Gen 3 scooter portfolio.

The Bhavish Aggarwal-led company received the 'Certification for Compliance.' The certification was granted by the Automotive Research Association of India under the aegis of the Ministry of Heavy Industries to all seven Ola S1 Gen 3 scooters.

The PLI certification makes Ola Electric eligible for incentives ranging from 13% to 18% of the determined sales value (DSV) until 2028. The Gen 3 portfolio comprise S1 Pro 3 kWh, S1 Pro 4 kWh, S1 Pro+ 4 kWh, S1 X 2 kWh, S1 X 3 kWh, S1 X 4 kWh and S1 X+ 4 kWh and represents a majority of the company’s current sales, as per a statement.

The scrip rose as much as 3.80% to Rs 52.75 apiece. It pared gains to trade 2.72% higher at Rs 52.20 apiece, as of 10:20 a.m. This compares to a 0.62% advance in the NSE Nifty 50 Index. It has fallen 58.47% in the last 12 months. Total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 67.

Out of eight analysts tracking the company, three maintain a 'buy' rating, two recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.7%