Ola Electric shares locked in 20% upper circuit on new Gig, S1 Z range of scooters; Citi gives 'buy' rating

Ola Electric shares have gained nearly 14 percent in the past week.

Ola Electric shares rallied as much as 20 percent to hit an upper circuit of Rs 88.10 in afternoon trade on November 27 after the company unveiled its most affordable electric scooters yet — the S1 Z and Gig range — with prices starting at Rs 39,000.

CEO Bhavish Aggarwal announced the launch on X (formerly Twitter), highlighting the scooters’ unique feature: a portable battery that doubles as a home inverter when paired with the Ola PowerPod. "Say hello to the Ola S1 Z & Gig range, starting at just Rs 39K! Affordable, accessible, and now with a portable battery pack," Aggarwal said.

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Reservations for the new models are already open, with deliveries slated to begin in April 2025. The new Gig range is designed specifically for gig workers, offering two variants — 'Gig' and 'Gig+' — priced at Rs 39,999 and Rs 49,999 (ex-showroom), respectively. These scooters will be available for both business-to-business (B2B) purchases and rental services, the company said in a statement.

International brokerage Citi initiated coverage on Ola Electric with a 'Buy' rating and a target price of Rs 90. This implies an upside potential of 23 percent from the last close of Rs 73. The brokerage said that its dominant 38 percent market share, extensive product portfolio, strong R&D, and vertical integration, including Li-ion cell manufacturing, bode well for Ola.

Upcoming launches in motorcycles and electric three-wheelers (E3Ws) are seen as potential volume drivers. While service issues persist, Citi expects improvements as the supply chain stabilizes. Valuations are based on a 4x FY26 EV/Sales multiple, reflecting Ola’s leadership in a high-growth segment, Citi said.

Ola Electric shares have gained nearly 14 percent in the past week.