Avoid bottom fishing in Ola Electric shares, says Dipan Mehta; calls it 'biggest disappointment'

Disclaimer This is an AI-assisted live blog with updates from multiple sources Disclaimer

At previous close, the Sensex was up 426.86 points (0.51 percent) at 84,818.13, and the Nifty was up 140.55 points (0.55 percent) at 25,898.55

Market expert Dipan Mehta has issued a strong cautionary note on Ola Electric, labelling the stock as the "biggest disappointment in the IPO market" and advising investors against attempting to buy it at its current low levels. Speaking with CNBC TV18, Mehta -- Founder Director of Elixir Equities -- expressed his long-standing negative view on the company, which has now seen its stock hit a 52-week low amid promoter selling.

Mehta highlighted that Ola Electric has failed to capture the market share that he and the broader market had anticipated. He pointed out that traditional two-wheeler manufacturers like TVS and Bajaj Auto are performing better and gaining more market share, despite Ola being a dedicated electric vehicle (EV) producer. "They don't seem to be getting the market share which we thought and the street thought they would be able to get," Mehta noted.

Adding to the company's challenges, Mehta explained that changes in government incentives, specifically GST cuts, have narrowed the price advantage of owning an electric two-wheeler. This reduction in the price gap has adversely affected overall demand for EV two-wheelers, impacting companies like Ola.

Given these headwinds, Mehta's advice to potential investors is unequivocal: "I would just pass Ola Electric at this point of time… even at these levels, there's no point bottom fishing that's for sure." He suggested waiting to see if the company can regain its market position before considering it afresh.

For investors who already hold the stock, Mehta believes the optimal time to sell has passed. He advised them to either remain invested for the long term to see how the company's strategy unfolds or to look for suitable exit opportunities in the future.