Ola Electric shares jump 10% to hit upper circuit on Goldman Sachs, BofA's 'buy' calls

Ola Electric shares jump 10% to upper circuit after BofA, Goldman initiate coverage with 'buy' ratings.

Ola Electric Mobility share price jumped as much as 10 percent on September 17 to hit the upper circuit at Rs 118.36 in the afternoon trade, adding to the morning gains, riding on bullish calls from major global brokerages. Bank of America and Goldman Sachs initiated coverage on Ola Electric stock with 'buy' calls on the positive growth outlook.

Goldman Sachs assigned a price target of Rs 160 on Ola shares, implying an upside of 35 percent from the current price. Bank of America has a target price of Rs 145 per share (22 percent upside).

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Goldman Sachs said Ola Electric is well-positioned for significant growth in the electric two-wheeler market, benefiting from long-term structural trends in India. The brokerage expects the company to reach EBITDA breakeven by FY27, with a projected revenue growth of over 40 percent CAGR from FY24 to FY30, leading to free cash flow breakeven by FY30. By FY30, Ola Electric is expected to achieve an EBITDA margin of 12 percent and a return on invested capital (ROIC) of 27 percent.

BofA highlights Ola’s technology and cost leadership as key drivers for its success in transforming the two-wheeler market to electric. While there are concerns around battery technology, BofA believes it remains a worthwhile investment bet.

Following this development, Ola Electric shares have snapped a four-day losing streak on the bourses.

Earlier this morning, Ola Electric shares opened at Rs 112.95, up 5 percent from the previous close, and gradually climbed to Rs 118.36 by about 2 pm to get locked in the upper circuit. The stock has slipped almost 20 percent in the past month.

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