Ola Electric Stock Soars 9% on Expansion Plans and Block Deal

Ola Electric stock up 5.7%

Ola Electric Stock Soars 9% on Expansion Plans Ola Electric’s share price saw a 5.7% increase on December 3, 2024, reaching ₹98.58, up from ₹93.26 at the previous close. On the previous trading day, the stock opened at ₹94.19 and ended at ₹93.26, after fluctuating between ₹92.50 and ₹101.42. The company has a market capitalization of ₹38,891.67 crore, with a 52-week high of ₹157.53 and a low of ₹66.60. The stock is currently showing a bullish trend in both the short and long term. For the short-term, it remains in a positive technical outlook, with a range of ₹92.50 to ₹101.42 noted for recent price movements.

Ola Electric Stock Soars 9% on Expansion Plans  Skoda has unveiled the price list for its new compact SUV, the Kylaq, with prices ranging from ₹7.89 lakh to ₹14.40 lakh (ex-showroom). These introductory prices will apply to the first 33,333 units, after which the company will review the pricing. Customers who purchase within this limit will also receive a complimentary 3-year or 1 lakh-kilometre warranty. The Kylaq will be available in four variants: Classic, Signature, Signature Plus, and Prestige. Online bookings have started, with deliveries set for January 27, 2025, and offline bookings available from the same date.

The prices for each variant are as follows:

• Classic: ₹7.89 lakh (manual only)
• Signature: ₹9.59 lakh (manual), ₹10.59 lakh (automatic)
• Signature Plus: ₹11.40 lakh (manual), ₹12.40 lakh (automatic)
• Prestige: ₹13.35 lakh (manual), ₹14.40 lakh (automatic)

The Kylaq is powered by a 1-litre TSI engine producing 114 bhp and 178 Nm of torque, paired with either a 6-speed manual or automatic transmission. The manual version accelerates from 0 to 100 km/h in 10.5 seconds, with a top speed of 188 km/h. The manual variant is expected to be one of the most fuel-efficient in its segment, achieving around 20 kmpl, while the automatic version is slightly less efficient.

The Kylaq comes with a range of features depending on the variant. The Classic trim includes over 40 features, while the Signature trim adds more advanced tech like tyre pressure monitoring and a 7-inch infotainment system. The Signature Plus offers wireless connectivity, a 10.1-inch infotainment screen, and a digital cockpit. The Prestige trim, the highest variant, includes a sunroof, dual-tone alloy wheels, and ventilated seats.

Skoda has also emphasized that the Kylaq is expected to perform well in crash tests, aiming for a 5-star rating, similar to the Kushaq and Slavia.

Ola Electric Stock Soars 9% on Expansion Plans  Ola Electric’s share price surged by nearly 7% in early trading on December 3, 2024, reaching ₹101.42, continuing a strong rally that has seen the stock rise by 28% over the past five trading sessions. This increase follows a sharp recovery from its 52-week low of ₹66.60. The stock’s strong performance is driven by three key factors:

1. Expansion Plans: Ola Electric’s CEO, Bhavish Aggarwal, announced plans to expand the company’s network of owned stores to 4,000 outlets by December 2024, aiming to cover every pin code in India. This ambitious expansion, which includes service centers, positions Ola Electric as a leader in EV distribution.
2. Product Launches: The launch of the Gig and S1 Z electric scooter range, priced starting at ₹39,999, has generated positive investor sentiment, boosting optimism about the company’s ability to capture a larger share of the two-wheeler EV market.
3. Positive Broker Ratings: Brokerages have been optimistic about Ola Electric’s growth prospects. Citi has set a target price of ₹90 with a “Buy” rating, while Goldman Sachs has a target of ₹137, and other firms like HSBC and Bank of America have set target prices between ₹110 and ₹120, citing strong growth potential and improved distribution networks.

These factors, coupled with Ola Electric’s 38% market share in India’s two-wheeler EV segment, have contributed to the stock’s positive momentum.

Ola Electric Stock Soars 9% on Expansion Plans  Ola Electric Mobility shares saw a significant boost on December 3, 2024, rising by 9%, marking the seventh gain in the last eight trading sessions. The stock hit an intraday high of ₹101.40, surpassing the ₹100 mark for the first time since October 4.

A block deal occurred earlier in the day, with 0.4% of the company’s equity—approximately 1.7 crore shares—exchanging hands for a total of ₹164 crore at an average price of ₹95 per share.

Ola Electric also announced plans to rapidly expand its network of company-owned stores. Currently, with 800 stores, the company aims to increase the number to 4,000 by December 20, 2024, accelerating its efforts to drive EV adoption in India, particularly in tier 2 and 3 cities. This is a significant revision of the initial goal of 2,000 stores by March 2025.

Additionally, Ola Electric’s founder, Bhavish Aggarwal, revealed plans to pledge 1.1% of the company’s equity. As of September 30, Aggarwal held a 30.02% stake in the company.