When fundamentals are rotten, trend analysis doesn’t work. So many retailers jumped in during the uptrend when Helios and Motilal Funds entered, now everyone’s underwater
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I think we have different definitions of uptrend. In my book, the stock was never in a sustained uptrend post listing.
To qualify as an uptrend, the stock should consolidate in a narrow range after a strong up move (with good volume) and then make another up move. Except for first month after listing when the stock rallied from ₹75 to ₹150, the stock has never seen another rally let alone consolidate in a narrow range.
It has been in a sustained downtrend on the monthly timeframe.
Fund managers are not always correct. That’s where stop losses protect your downside.
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A very good read about Ola’s falling performances, loosing market share and management’s shifting narrative to justify its actions !! The company under the current management is indeed clueless about how to do a solid course correction and save retail shareholders who own about 50% of the company now.
With falling market cap, is the company now ready to be taken over by serious players like Honda, Mahindra etc? If that happens, the current management may also have to go.
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off late seing few messages in this thread about new narrative of ola electric being taken over or such predictions without any substance yet. Why would any established company want to take a failed brand whom consumers desist and company left with absolutely no moat now?
Disc- Not invested, not a buy/sell recommendation, post only for learning, not eligible for any advice. I can be wrong in all my assessments.
They have good tech (at least on paper). They can rebrand it, sell and no one would be wiser. But I see a blocker for all these ‘acquisition’ hopes. Bhavish with his 27% stake would simply block any sell while they have the cash to hibernate
No one will buy it for the brand. Maybe for the gigafactory. And not at this price. They would wait for high teens kind of numbers and buy after total capitulation by next yr.
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Interesting
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I had warned on the same long back (not my words, excerpt from reddit):
Disc: no position
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Ola electric has been getting significant attention from past few days. Some thoughts:
Ola electric is still the leading and only Indian company which is manufacturing advanced chemistry cells (Li-ion cells) indigenously in India and not importing from China. (all other EV/battery companies import Chinese storage cells and assemble them as battery packs for Indian market). Among the many companies which participated in Rs 18,100 Cr ACC-PLI scheme in 2022, only Ola electric has an operational facility so far. Others have simply exited or are facing delays. Although, no company (including Ola Electric) have earned even single rupee out of the above PLI pool which would in future probably require relaxation of rules in order to be meaningful.
I see Ola as a battery company more than an EV company. So far Ola has made reusable batteries for EVs, residential batteries but they still haven’t made/released industrial scale utility batteries/BESS which is a huge market in itself especially with data center/renewable power plants and the grid stabilisation needed to support those.
The real upside in Ola will be when they announce release of a utility BESS solution for industries. When that happens or IF that happens at all remains to be seen but I am optimistic.
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From 1 April 2028, only electric two‑wheelers will be allowed for new vehicle registrations in Delhi, meaning new petrol scooters and motorcycles will no longer be registered in the capital.
This policy is expected to give a strong push to companies involved in electric vehicles, batteries, and charging infrastructure that are listed on the NSE.
Key EV‑linked stocks include Bajaj Auto, Hero MotoCorp, TVS Motor, and Ola Electric Mobility, all of which are directly connected to electric two‑wheelers and broader EV growth.
For the charging‑infrastructure angle, important names are Tata Power, Exicom Tele‑Systems, Ampvolts, Bharat Electronics, Indian Oil Corporation, Reliance Industries, NTPC, Bosch, and Servotech Renewable Power System Ltd (SERVOTECH), which are building or supplying EV chargers and solar‑integrated charging solutions.
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This is just a draft that they have proposed. Its not implemented.
However recent interest in Ola stock should be seen carefully. If it is public FOMO or some meaningful buying by Fund houses, Institutions, etc.
Need to wait for an update from Govt for the same.
India plans $3.8 billion battery push, eyes ‘battery moat’ with approved vendor list
Just like in solar, India plans an ‘Approved List of Models & Manufacturers’ to reduce reliance on Chinese imports.
Aiming for 50 GWh of domestic cell chemistry production.
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Thanks Sir for sharing the valuable information..
If we try to look at Ola as a “battery and cell manufacturer” rather than just a 2-wheeler brand, does the current beaten-down stock price actually make it look attractive? Or are the governance risks and the cash-burn from the scooter side just too big to ignore?
Apparently, the Roadster bike is getting negative reviews
Ola’s only hope was product superiority as customer trust has gone down the drain already. This is a big blow
- Roadster getting negative reviews
- Ola Shakti’s real world applications under doubt (it is 2x expensive vs Lead acid for same GWH)
- Bharat 4680’s feedback being awaited
Ola has massive fixed costs because of Gigafactory and in-house R&D
Very very disappointing review
The public is of opinion that it’s an implanted review to damage Ola reputation by the competitors…
Yeh public hai, yeh sab jaanti hai. Yeh public hai…
Link to the X thread: https://x.com/autocarindiamag/status/2045853010153390165?s=20
This is the Autocar India video. It would be better to make up one’s mind after watching this.
Disclaimer: I have not watched it. Biased against Ola.