Usman Salis
The share price of Ola Electric (OEL) has skyrocketed by 92% within just six days of its listing, driven by strong Q1 results and the launch of new motorcycles.
Ola Electric (OEL) Continues Its Bullish Run
The shares of Ola Electric Mobility Limited (OEL) have been on a remarkable upward trend, marking their sixth consecutive session of gains since their debut on August 9, 2024. On the NSE today, Ola Electric opened with a notable upside gap at 1.6617$ per share and quickly surged to an intraday high of 1.745$, reflecting a 10% jump within minutes of the market opening. This meteoric rise has seen the stock climb approximately 92% from its issue price of 0.906$ per share.
The impressive performance of Ola Electric (OEL) can be attributed to its robust Q1FY25 results, which have further fueled investor confidence. In addition to its financial performance, the company announced the launch of four new two-wheeler motorcycles during its annual Sankalp program. This dual boost has positioned Ola Electric's shares for continued growth, with stock market experts projecting that the share price could reach 2.0862$ per share shortly. As a result, shareholders have been advised to adjust their trailing stop loss to 1.5497$ to secure profits.
New Product Launches Boost Ola Electric's (OEL) Market Outlook
Market analysts have highlighted the key factors driving the current rally in Ola Electric (OEL) shares. Arun Kejriwal, Founder of Kejriwal Research and Investment Services, pointed out that the company’s recent product launch at the Sankalp event has been a significant catalyst. Ola Electric unveiled four motorcycles, priced between 894.0842$ and 2980.2806$, with bookings already open and deliveries scheduled for Diwali 2025. The motorcycle market dominates the two-wheeler segment in India, with a 70-72% market share. However, within the electric vehicle (EV) sector, motorcycles currently hold just a 1% share, presenting a vast growth opportunity for Ola Electric.
Given Ola Electric’s (OEL) strong quarterly performance and strategic product launches, experts recommend holding onto the stock for the medium to long term. The recent developments have solidified Ola Electric's position as a portfolio stock, with the potential for further gains as the company continues to penetrate the EV market. Investors who participated in the IPO have already seen significant returns, and with the share price expected to rise further, the stock remains an attractive buy.
Conclusion
With Ola Electric (OEL) shares experiencing such a rapid surge, the question arises: is it time to book profits? While the stock’s momentum suggests more upside potential, market experts advise caution. Upgrading the trailing stop loss to 1.5497$ per share is a prudent move for those looking to protect their gains. However, for long-term investors, the outlook remains positive, with Ola Electric positioned for continued success in the growing EV market.
Usman Salis
