Ola Electric’s Shares In Red

New Delhi: Bhavish Aggarwal-run Ola Electric shares nosedived further on Monday, as market analysts warned retail investors not to go bullish on the stock yet, owing to its speculative valuation amid rising competition.

The electric vehicle (EV) company’s stock closed at Rs108.15 apiece, a drop of 2.56 per cent from its last trading session. The share is down more than 31 per cent from its recent all-time high of Rs157.40.

The stock market is bullish on the EV theme with Ola leading in the two-wheeler segment, although its market share has been decreasing amid tough competition from rivals like TVS Motor and Bajaj Auto. Santosh Meena, Head of Research, Swastika Investmart Ltd, said that currently loss-making and trading at high valuations, the market is optimistic about Ola’s future profitability.

“However, the speed at which the company can turn profitable amid rising competition will be crucial. While the growth outlook remains strong, concerns over valuation and competition mean only aggressive investors should consider staying invested,” Meena told IANS.

Analysts cautioned investors, especially given the company’s ongoing losses and the high volatility in its stock price.