Fundamentals will not justify Ola Electric's share price, says Raamdeo Agrawal

The relentless rally in Ola Electric's shares after a strong listing last week has made it difficult to justify the valuations, Veteran investor Raamdeo Agrawal has said.

"Current fundamentals will not justify the price," Raamdeo said on CNBC-TV18, however, the market is pricing in Ola's strong positioning in the EV space, and seems excited about its leadership in electric mobility. Ola claims to have near 49 percent market share in the electric two-wheeler space, though it is yet to become a profitable.

Ola Electric embarked on an ambitious electric motorcycle rollout, launching the 'Roadster' series, at a starting price of Rs 74,999. CEO Bhavish Aggarwal said the delivery of the Roadster Pro will begin by Diwali next year, while the Roadster X will be available from January 2025.

Raamdeo, however, is not writing off the incumbents of the two-wheeler business - Hero Moto and Bajaj Auto, and expects them to become strong players in the EV space at 'some point of time'. With so much focus on electric mobility, Raamdeo said if the transition from ICE to EVs is slow, one can expect the leading players to have the 'entire pie to them', as there is no new competition coming into ICE any more.