Stock Of The Day: Ola Electric Shares Trade Below IPO Price With 60% Plunge From Peak

Ola Electic Mobility Ltd. stock extended losses to trade below its issue price, after having fallen nearly 60% from its peak as soon as the stock debuted.

Shares of the electric vehicle manufacturer found very few takers as the stock has tumbled from its peak on Aug. 20 last year. The counter is also trading below the 14-day simple moving average and the 21-day exponential moving average.

The shares fell as much as 21% in 2025. The stock faces immediate support at Rs 66.6, and a close below that could send the stock to the Rs 64.7 mark. The counter will need to top the 21-DMA of Rs 73.2 level to see a momentum change in the short term.

The shares fell as much as 3.6% on Monday, compared to a 0.8% fall in the benchmark Nifty 50. The stock was trading 29 times its 30-day moving average. Relative strength was at 61.74.

Four of the eight analysts tracking the company have a 'buy' rating, two suggest a 'hold', and two have a 'sell', according to Bloomberg data. The average of the 12-month analysts' price target implies a potential upside of 15%.

Ola Electric Mobility's loss widened, and revenue shrunk, as a slump in sales impacted the financials of India's largest electric two-wheeler maker.

Consolidated net loss of the billionaire Bhavish Aggarwal-led company widened to Rs 564 crore in the three months ended Dec. 31, 2024, as against Rs 376 crore in the year-ago period, even as revenue fell 19.4% to Rs 1,045 crore.

Ola Electric faces increasing pressure from established original equipment manufacturers and new entrants, according to Investec. To add to its woes, Japanese manufacturers are also set to join the fray, it said.

Ola Electric's cash flow will likely remain in check because of aggressive discounting, service-related issues, and investments in cell manufacturing, the brokerage said.