Ola Electric Stock: HSBC Says Recent Market Share Loss Worrisome But Retains Target Price

HSBC said that the recent market share loss at Ola Electric is worrisome as the brokerage firm sees a 15-20% downside risk to its FY25/26 volume projections for the company if the current market share trend continues. 

This comes days after the recently listed Ola Electric’s total escooter registrations slumped 34% month-on-month (MoM) to 27,517 units in August. Its vehicle registrations stood at 41,712 units in July and 36,832 units in June.

“Recent market share loss could be due to the ramp-up of low cost variants from competition,” HSBC said.

On the other hand, TVS’ market share in the electric-two wheeler market has surged from 15% to 19% over the same period while Bajaj’s has jumped from 11% to 18%. TVS Motor has been witnessing sustained growth in recent months, with new registrations for its EVs jumping 39% month-on-month to 19,471 units in July.

Despite the recent sales dip, HSBC remains optimistic about Ola Electric’s recovery and has maintained its ‘buy’ rating on the stock. The firm has set a price target of INR 140, which suggests a 24% potential upside from the previous close.

Since its stock market debut last month, Ola Electric’s shares have experienced significant volatility, with periods of both gains and declines.

In September, shares of Bhavish Aggarwal-led Ola Electric plunged as much as 4% to INR 105.10 apiece during the intraday trading session on the BSE.

On August 9, Ola Electric Mobility’s shares made a flat debut on the bourses as the stock got listed at INR 75.99 on the BSE, same as the issue price.

At 11:10 AM, shares of Ola Electric were trading at INR 112.30, a decline of 0.62% from the previous close of INR 113.