Ola Electric Mobility shares saw a 3% uptick, reaching ₹106 in early trade on September 26, following HSBC's decision to maintain its bullish stance with a 'buy' rating. This development offers a positive signal for those interested in share market investment, especially considering the electric vehicle (EV) market's growing prominence.
HSBC's support comes as the brokerage firm highlighted several growth drivers for the company, making it an attractive option for share market investment.
HSBC has set a target price of ₹140 for Ola Electric Mobility, implying a potential 35% upside from its previous close of ₹103 per share on the NSE. This bullish forecast is of particular interest to those considering share market investment, as the potential return is significant. Despite the stock facing a rough patch, with a 12% decline earlier in the week, HSBC believes that Ola Electric's growth story remains intact, making it an attractive choice for share market investment.
While Ola Electric has faced issues with overwhelmed service stations, receiving approximately 80,000 complaints monthly, HSBC sees these as temporary obstacles. The company has implemented multiple strategies to address these challenges, including the formation of a dedicated service team. For those considering share market investment, this move demonstrates Ola's commitment to resolving customer concerns and improving service quality ahead of the upcoming launch of its electric motorcycles.
HSBC is also optimistic about Ola's battery manufacturing venture, which aims to reduce costs to levels comparable with imported batteries. The brokerage expects Ola to eventually produce batteries that are $15 to $20 cheaper per kWh than current rates. This cost reduction is crucial for Ola's long-term profitability and could offer upside potential for share market investment.
HSBC noted that Ola Electric sold 49% of all electric two-wheelers in the June quarter, a feat that further boosts confidence in the company's growth prospects. For those looking at share market investment, Ola's commitment to building most of its EV parts, including batteries, domestically, adds another layer of appeal to its stock.
The EV sector continues to benefit from strong regulatory backing, which is another factor contributing to HSBC's positive stance on Ola Electric Mobility. Regulatory support, along with the company's ability to cut costs and scale its battery venture, makes Ola a compelling option for share market investment. The brokerage has reaffirmed that the risk-reward balance remains favourable, suggesting further growth for Ola's stock.
In summary, with HSBC maintaining its 'buy' rating and Ola Electric showing clear potential for growth in the EV space, this stock offers promising returns for those involved in share market investment.
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