Subscribe for Ola Electric Mobility Ltd; LKP Research

LKP Research, has come out with its report on Ola Electric Mobility Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on July 31 2024.

Broker Research

August 01, 2024 / 09:45 IST

IPO

LKP Research, IPO report on Ola Electric Mobility Ltd

Ola Electric Mobility Limited (Ola) is #1 EV 2W player in India with highest revenues among all the EV 2W manufacturers in India and is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. Ola manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. Ola’s businesses focus on capturing the opportunity arising out of electrification of mobility in India and seek opportunities to export EVs in selected international markets in the future. Ola delivered seven products and additionally announced four new products since first product announcement in August 2021. Ola commenced delivery of first EV model, the S1 Pro, followed by the delivery of the S1, S1 Air and S1 X+ and the Ola S1 X (2 kWh), the Ola S1 X (3 kWh) and the Ola S1 X (4 kWh). On August 15, 2023, Ola had also announced a line-up of motorcycles comprising four models- Diamondhead, Adventure, Roadster and Cruiser. Ola plans to commence delivery of the motorcycles in H1 FY26. Ola has R&D at its core with a focus on in-house product innovation. They are in the process of building a EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu, India, which includes Ola Futurefactory (scooter manufacturing), and upcoming Ola Gigafactory (cell manufacturing). The Ola Futurefactory is the largest integrated and automated E2W manufacturing plant in India (in terms of production capacity, currently 1 mn p.a.) by an E2W-only OEM, as at March 31, 2024. In addition, they operate a BIC in Bengaluru that is focused on developing cell battery technology and manufacturing processes for forthcoming cell manufacturing at the Ola Gigafactory, while the company operates its 870 experience centres and 431 service centres as at March 31, 2024.

Valuation and Outlook

Therefore, keeping an eye and a cautious view on the demand and thereby the reduction in losses for Ola, we recommend to SUBSCRIBE this IPO with a long term perspective.

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