I have a question for ola and ather shareholders. Both of them have profit from operations in the negative and the hole keeps getting bigger each year. What do you actually look for in these companies? If someone can share insights I’d be grateful.
(post deleted by author)
Hi Gaurav,
Can’t say for others but here is what I see.
New 2W sales will be majority EV in about 3-4 years. Govt has set a target of 80% 2W as EV by 2030. I am ok if we achieve 50-60%. Currently, it is 5%. So, there is going to be a massive increase in production due to favourable policy of govt. Now, anyone who retains even 10-15% of that market will be profitable at that scale. The products are good. The capex is already done, OLA is also working on battery, chinks will be smoothed, service will be improved, parts availability will be managed as supply chain forms, roadside mechanics will also be sufficiently skilled with EVs in a few years.
This change is already happening. So, that is the play. People think Bajaj and TVS will take 100% share but that is not possible. We shall have perhaps 5-6 big players in the market. All will make money. Some more than others.
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How many 2W to be sold per month to achieve breakeven?
How much is the outstanding Debt? How much scooters to be sold to pay of the debt?
Whether that much Addressable market without competition there? Now add, with competition, how much TAM they can achieve?
Equity is not small portion (441 crores) + adjust for ESOP program + adjust for any other instrument. To make EPS of Rs 1, how much profit after tax needed.