Ola Electric’s stock has shown gains over three consecutive trading days, closing at Rs 40.9 on the Bombay Stock Exchange on Friday. This level is nearly double the company’s 52-week low of Rs 21.21, recorded on March 2. While the increase might appear as a fortunate upturn, closer examination reveals substantive developments supporting the rise.
Throughout much of March, the share price hovered between Rs 22 and Rs 25. A significant update arrived on April 7, when the firm, led by Bhavish Aggarwal, announced that its proprietary lithium iron phosphate (LFP) battery cell is prepared for manufacturing. This advancement supports greater in-house production, encompassing batteries and full vehicles.
The new 46100-format LFP cell exceeds the size of the prior NMC-based 4680 Bharat Cell, potentially enabling enhanced efficiency, reduced expenses, and broader applications in electric vehicles and energy storage systems. Such progress indicates a focus on enduring strategies rather than temporary fluctuations.
On April 3, Ola Electric achieved another milestone by obtaining certification under the government’s Production Linked Incentive (PLI) program for its Roadster X+ 4.5 kWh model. This endorsement, part of the PLI-Auto initiative, bolsters the company’s production capabilities and qualifies it for financial benefits that could improve profitability and expansion.
Sales figures have also strengthened. Vehicle registrations rose to 10,117 in March, more than doubling the 3,973 recorded in February, marking a strong recovery from earlier declines. By late March, daily orders surpassed 1,000, indicating renewed consumer interest.
Addressing ongoing complaints about service standards, the company reports enhancements in component supply and repair processes. It claims that more than 80% of vehicles receive same-day servicing. Additionally, new customer initiatives include service assurances, complimentary transportation during delays, repurchase programs, and longer warranties, all designed to restore confidence.
This uptick follows a difficult period. After going public in August 2024 at Rs 76 per share, the stock peaked at Rs 91.2 on its first day, achieving a market value of Rs 40,218 crore. Since then, it has declined significantly, with the current market capitalization at approximately Rs 18,040 crore.
Investor concerns have centered on service problems, product reliability, and diminishing market presence. In February, reports indicated the company reduced its retail growth ambitions, targeting about 550 outlets after previously planning for 4,000 nationwide.
Despite the recent gains, analysts note potential overvaluation, with data suggesting the stock might be overbought and vulnerable to corrections. While the current momentum appears driven by tangible improvements, the key issue is whether Ola Electric can maintain this progress and regain its initial market standing.
