They make good points and I generally enjoy reading The Ken. Similarly, Morning Context too has negative views on Ola.
It is only when others have negative views do you find shares at good prices. Now coming to the actual issue:
The debt which has to be serviced. They themselves say that there is plan to raise 1700 crore debt. That is well known. It should be enough to tide them over. Let us say it is not. My guess is that the use of 2800 crore would be changed. I say this because they have now changed targets of expansion. For example: battery capacity would now be at 5GW for the time being, which earlier was supposed to be 20GW.
So, they can take permission of shareholders and according to SEBI regulations, use that for OPEX too. My sense is that it would have to be done at some point.
So, the basis of The Ken’s video( that 2800 crore is locked away) is not accurate.
Secondly, the business will now stabilise for a few quarters. The targets of 325-375k for the year with revenue targets of 4200-4700 crores are quite doable. With margin expansion, the cash will start coming in by next FY. Remember it is still a 3-4 year old company. Things are changing fast and in my opinion for the good.
There should be a lot of opportunities to buy as results will be not according to what media expects. Although, for those who follow closely, there would be only a few surprises.
Ola will likely disappoint both the optimists and th pessimists. I think it will survive, but not thrive as early as many of us would like it to. This is not a counter where you can make quick money. But in long term, current valuations would make sense.