Ola Electric Share Price Rallies On Expansion Of Store Network

Shares of Ola Electric Mobility Ltd. surged over 6% in early trade on Thursday after the company announced on Wednesday that it has significantly expanded its network to 4,000 stores nationwide, a four-fold increase from its previous footprint. The company has opened over 3,200 new stores, each paired with service facilities.

This expansion goes beyond major cities and Tier I and II areas, extending to smaller towns and tehsils, as stated in an official announcement from Ola Electric.

Ola Electric Chairman and Managing Director Bhavish Aggarwal highlighted that the company's new stores, co-located with service centers, have transformed the electric vehicle buying and ownership experience. He also mentioned that this expansion sets new standards, supported by the #SavingsWalaScooter campaign.

In late September, NDTV Profit conducted an in-depth research that uncovered a troubling issue with Ola Electric scooters, revealing what appeared to be a "graveyard" of malfunctioning vehicles. Interviews with more than a dozen customers exposed widespread problems, including faulty hardware and glitching software. Spare parts were difficult to obtain, causing significant delays in repairs. Service centers across India were overwhelmed, dealing with nearly 100,000 complaints each month.

This prompted a show-cause notice from the Central Consumer Protection Authority, which sought an explanation from Ola Electric regarding over 10,000 complaints reported to the National Consumer Helpline. While the EV manufacturer later claimed that nearly all complaints had been resolved, the CCPA found inconsistencies in these claims.

Ola Electric share price rose as much as 6.35% to Rs 99.95 apiece, the highest level since Dec. 17, 2024. It pared gains to trade 2.04% higher at Rs 95.90 apiece, as of 10:06 a.m. This compares to a 0.3% advance in the NSE Nifty 50 index.

It has risen 5.04% on a year-to-date basis since its listing in August. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 58.71.

Out of seven analysts tracking the company, five maintain a 'buy' rating, and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 2.5%.