Ola Electric shares snap 6-day losing streak; surge 6%

Ola Electric shares listed at price with their IPO price a month ago.

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Shares of Ola Electric Mobility are back in the green, surging  around 6 percent on September 5, snapping a six-day losing streak. The stock shed around 14 percent in its six-day fall, which was triggered by sharp profit booking after its bull run post its market debut.

At 12.39 pm, shares of Ola Electric Mobility were trading at Rs 113.96 on the NSE.

Meanwhile, the management's optimistic comments also bolstered sentiment for the stock. In an interaction with CNBC-TV18, the company reiterated its focus on building the next wave of the electric vehicle (EV) journey. Further giving something for investors to rejoice, the company stated that it was very close to 'breakeven' at the EBITDA level.

In addition, the management also highlighted that Ola Electric's growth remains one of the highest in the industry as its fundamentals continue to remain strong.

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Brokerage firm Anand Rathi Stock and Stockbrokers also stands impressed by Ola Electric's focus on investing big in battery cell manufacturing, which makes the backbone of EV infra, along with EV hubs in  Krishnagiri and Dharmapuri in Tamil Nadu and Ola Giga-factory. On that account, the brokerage feels the growth prospects for Ola Electric look promising, with new launches lined up in the EV bike space.

On the technical side, analysts at Anand Rathi highlighted that the stock had retraced 61.8 percent of its upmove post listing in its six-day downfall. "Although, we don’t have much price history for the stock but for short term the stock looks oversold. However, the fundamentals suggest that the stock has great potential," the brokerage stated.

Accordingly, the brokerage suggests investors to go long on the stock between Rs 107.5 – 112.5 with a stop loss of Rs 95 for the upside target of Rs 140 in the coming months.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.