Ola Electric Share Price Gains 3% Following HSBC's Positive Outlook

Ola Electric Mobility Share Price Update

Ola Electric mobility shares experienced a boost, rising over 3 percent to Rs 106 during morning trades on September 26. This uptick followed HSBC's reiteration of its upbeat stance, issuing a 'buy' call on the prominent EV two-wheeler manufacturer, highlighting growth levers that could propel the share price upwards.

HSBC's Target Price and Market Position

With a target price of Rs 140, HSBC indicates a potential upside of around 35 percent from Ola Electric's previous closing price of Rs 103 on the NSE. Despite this positive outlook, the company's shares have faced a 12 percent decline this week.

Service Challenges and Company Initiatives

Issues have arisen as Ola’s service stations are reportedly inundated with service requests, receiving approximately 80,000 complaints each month. To alleviate the situation, Ola Electric has enacted various measures, including the formation of a dedicated service team to better manage customer concerns.

HSBC's Confidence in Battery Ventures

Moreover, HSBC's previous assessments show confidence in Ola's battery production plans. The brokerage expects them to manufacture batteries competitive with global standards, predicting cost efficiencies of $15 to $20 per kWh compared to current prices. This presents potential upside risks to their earlier estimates.

Investment Outlook

HSBC encourages investment in Ola Electric, citing ongoing regulatory support and the company's capability to control costs while providing a favorable risk-reward ratio with its battery initiatives. Ola's substantial market presence, achieving around 49 percent of electric two-wheeler sales in the last quarter, strengthens this outlook.