Ola Electric Mobility Ltd. shares dropped over 7% during early trade on Monday, on likely profit booking after three sessions of significant gains. The total traded volume stood at 3.5 times the 30-day average and the turnover was Rs 625 crore on the NSE.
On Friday, the stock closed 12.6% higher, on Thursday 20% and Wednesday 5%. The stock has fallen 23% in the last 12 months and 55% year-to-date. The NSE has revised the price band on the stock from 20% to 10% starting today. The exchange has also added the stock in its short-term Additional Surveillance Measure (ASM) framework.
The rally last week came after Ola Electric announced the readiness of its in-house developed Lithium Iron Phosphate (LFP) cell, marking a key milestone in its mission to accelerate electric mobility and build a full-stack energy ecosystem. Developed as part of Ola's vertically integrated battery innovation efforts, the new 46100 format LFP cell is bigger than the current NMC 4680 Bharat Cell and represents a stepchange in scale, cost efficiency, and applicability across both mobility and energy storage solutions, and will begin entering Ola's products starting next quarter, according to a statement.
The company also secured PLI certification on April 3 for its Roadster X+ (4.5 kWh) motorcycle, the first motorcycle in their Roadster lineup to receive this eligibility.
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Buy, Sell Or Hold
Ola Electric has staged a sharp 80% relief rally from its Rs 22.50 base, bolstered by strong accumulation and momentum during recent geopolitical turbulence. However, the ticker faces a critical technical ceiling at the 200-day EMA at around Rs 40.70, according to market expert Kush Bohra.
Structurally, the stock remains in a confirmed primary downtrend, characterised by a persistent sequence of lower highs and lower lows on long-term timeframes since its August 2024 peak of Rs 157. History suggests these volume-backed rebounds often function as bull traps within a secular decline, he said.
Bohra recommends utilising this strength for a staggered exit, shifting focus toward Ather Energy Ltd. Since its listing, Ather has demonstrated superior relative strength and consistent value creation, making it his preferred play in the EV sector.
Ola Electric Target Price
Six out of eight analysts tracking Ola Electric have a 'Sell' rating on the stock, and two recommend 'hold', according to Bloomberg data. The average of 12-month price targets of Rs 26.86 indicates a potential downside of 30%.
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