As Ola Electric gets closer to its IPO listing price of ₹76, its shares opened lower on Wednesday.
What transpired was that Kotak Securities issued a “reduce” call and set a target price of ₹80 for the Bengaluru-based electric car company.
With complaints reportedly reaching 80,000 each month, the firm has come under heavy fire for its after-sales support. The CEO of the company, Bhavish Aggarwal, got into a heated argument with comedian Kunal Kamra on X earlier this month after Kamra reacted negatively to the growing number of consumer complaints regarding Ola’s service quality.
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Since then, most sessions have seen a slide in the stock, with the price of Ola Electric shares falling by almost sixteen percent. On Friday, October 4, the company’s market capitalization was approximately ₹43,730 crore; however, by Monday, it had dropped to approximately ₹36,660 crore, resulting in a loss of almost ₹7,000 crore.
Over the past five trading sessions, the electric car company based in Bengaluru has experienced a decline of more than 9%. The stock has dropped by more than 12% since its spectacular launch on August 9.
Notwithstanding the challenges, the brokerage is upbeat about the company’s chances for expansion due to the rising popularity of electric two-wheelers. By FY30, Kotak anticipates that 28% of Indians will be riding electric two-wheelers.
Additionally, Kotak pointed out that the company’s end-to-end vertical integration is anticipated to contribute to higher profit margins. From FY24 to FY28, a 30% yearly revenue growth rate is projected.