Ola Electric Target Price Hiked As Goldman Sachs Eyes Over 11% Upside: Here's Why

Ola Electric Mobility Ltd. share price has received a target hike from multinational investment firm Goldman Sachs on the projection of higher revenue in the coming years.

The Bhavish Aggarwal-led company has said it intends to invest a potentially more modest amount in battery cell manufacturing. The company will now pursue 5 GWh of capacity compared to the 20 GWh original target by 2030.

Moreover, Ola Electric last month obtained a compliance certification that makes it eligible for benefits under the government's Production Linked Incentive for its top-selling Gen 3 scooter portfolio. The company has also announced plans to launch a range of performance scooters early next year.

"We factor these updates into our model in the form of lower battery capex, modest increase in revenue estimates and consequent marginal improvement in outer year profitability," Goldman Sachs analysts said in a note.

They raised the FY26-FY28 revenue estimates by up to 5%.

Based on these factors, the firm revised Ola Electric's 12-month target price to Rs 72 from Rs 63 earlier. The target implies a potential upside of 11.6% over Thursday's closing price.

The stock has fallen by nearly 25% so far this year.

Two out of the seven analysts tracking Ola have a 'buy' rating on the stock, two recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price target implies a potential downside of 25%.