Goldman Sachs Cuts Ola Electric Share Price Target As Market Share Falls

Multinational investment bank Goldman Sachs reduced its share price target for Ola Electric Mobility Ltd., citing a moderation in market share in electric two-wheelers.

The company's market share has fallen from 20% to sub 15% over the last six months, which analysts have factored into their second-quarter earnings estimates, according to a client note.

Hero MotoCorp overtook Ola Electric to become the fourth-largest EV seller in India, according to the latest Vahan retail data. Bajaj Auto, TVS Motor and Ather Energy are the other leaders.

The 12-month price target for Ola Electric has been reduced from Rs 72 to Rs 62 per share. The firm has retained its 'buy' rating on the company.

Goldman Sachs said that while Ola Electric has announced its foray into the lithium-ion battery energy storage market, investors will be watching to see whether execution here is going to be better than what they have witnessed so far in the electric two-wheeler space.

The company launched 'Ola Shakti', a residential BESS solution, this month. The system will scale from residential applications to grid-scale deployments, all anchored by the same 4680 Bharat Cell technology platform and produced at the Ola Gigafactory.

With its entry into the BESS market, Ola Electric expects its annual consumption for BESS to scale up to 5 GWh in the next couple of years.

"Ola Electric will be a standalone battery energy storage provider competing with players who can offer integrated solutions for power backup, so it remains to be seen how strong the market share pickup can be in this segment," the Goldman Sachs note said.

Ola Electric share price settled 0.5% higher at Rs 53.67 on the BSE on Thursday, compared to a 0.15% rise in the benchmark Sensex. The stock has fallen 41% since listing in August 2024. It is down 38% so far this year.

The board is due to meet on Saturday to discuss fundraising plans via equity.