Ola's uncertain future: Analyst advises investors to stay away amid lack of clarity

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At previous close, the Sensex was down -120.21 points (-0.14 percent) at 84,559.65, and the Nifty was down -41.55 points (-0.16 percent) at 25,818.55

Amid growing uncertainty surrounding Ola's future following the promoter's partial stake sale, market expert Siddhartha Khemka has advised investors to steer clear of the stock, which has been hitting fresh lows. Speaking with CNBC TV18, Khemka -- Head of Research, Wealth Management, Motilal Oswal Financial Services -- highlighted a significant lack of clarity regarding the company's future roadmap as the primary reason for caution.

While Khemka does not have active coverage on Ola, he shared his perspective on the company's prospects. He expressed a positive outlook on the two-wheeler electric vehicle (EV) side of the business, identifying it as the potential growth story for the company. Acknowledging that Ola possesses a good brand and model, Khemka stressed that the business needs to scale up significantly to realise its full potential. He pointed out that legacy players like TVS Motors and Bajaj Auto have successfully gained market share in the EV two-wheeler space, setting a competitive benchmark.

However, due to the ambiguity surrounding Ola's future strategy and growth plans, the recommendation is to "stay away" for now. The market expert suggested that there are better investment opportunities available in the market. He identified TVS Motors as a "preferred pick" in the two-wheeler segment, citing its established market leadership in the EV two-wheeler category as a key advantage.

In conclusion, Khemka's view is that investors should wait for more definitive information and a clearer strategic direction from Ola's management before considering an investment in the company. The current lack of a visible roadmap makes it a risky proposition compared to more established players.