Ola Electric Stock Sees 3% Increase After HSBC Maintains 'Buy' Recommendation
Ola Electric Stock Gains Momentum
Shares of Ola Electric Mobility surged over 3 percent to Rs 106 in morning trade on September 26 after HSBC maintained its 'buy' rating on the company. The international brokerage sees a 36% upside potential, setting a target price of Rs 140 based on current market performance.
Positive Forecast Amid Service Challenges
Despite a recent 12 percent decline this week, HSBC notes that many of Ola's service stations are currently overwhelmed with service requests. Reports indicate that Ola faces approximately 80,000 monthly complaints, prompting the company to form a new service team focused on improving customer support as it prepares for the upcoming launch of electric motorcycles.
- HSBC expresses confidence in Ola's battery venture, expecting competitive costs.
- The company aims to produce batteries at rates $15 to $20 lower per kWh than current imports.
- With sustained regulatory support and cost reduction capabilities, Ola Electric is deemed 'worth investing in'.
At 9:20 am, shares were trading at Rs 103, reflecting a 0.5 percent increase from the previous close.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.