Ola Electric Shares Expected to Gain Momentum Amid 20% Surge in April Sales.

Ola Electric Shares Set to Shine as Sales Momentum Extends

On Monday, 4 May, shares of electric two-wheeler manufacturer Ola Electric are expected to attract significant attention as the sales momentum continued in April, following a sharp rebound in March. This development is likely to further drive investor interest in the counter, which recorded its biggest monthly gain last month following an over 60% increase.

Ola Electric shares snapped their 6-month losing streak in April as the counter rallied a whopping 61.63% on a sharp turnaround in its sales performance. The new-age stock listed in August 2024 and has emerged as one of the biggest wealth destroyers in recent times due to concerns from declining volumes, poor after-sales services, falling market share, and deepening losses plaguing investors. During this period, Ola Electric's stock even hit a low of ₹21.21 per share, with its market cap wiping off nearly ₹9,000 crore from investor wealth.

However, this souring mood against Ola stock is starting to reverse, mainly boosted by a strong turnaround in March sales numbers. The April sales figures signal that demand may be stabilising after a long period of disappointment. Ola Electric on 1 May announced its April sales numbers, which were 20% higher on a month-on-month (MoM) basis. Ola's registrations rose to 12,166 units last month, up from 10,133 units in March, according to VAHAN data.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

According to the press release, Ola Electric was the only leading EV two-wheeler brand to grow MoM in April as the overall industry faced a 22% decline, suggesting a strengthening foothold in the market. Ola said that its EV motorcycle portfolio is gaining traction, with Roadster X ramping up especially in the large motorcycle markets such as Uttar Pradesh, Bihar, and Madhya Pradesh. The company further said that Ola's 4680 Bharat Cell-powered products are also seeing increasing adoption.

Analysts told Mint last month that it is still too early to say that the worst is over. According to them, the bigger issue remains operations, especially service quality. This has been the main reason customer confidence weakened earlier. Ola has claimed that more than 80% of vehicles are now being serviced on the same day and that parts availability has improved, which is positive if sustained.

Vinit Bolinkar of Ventura had recommended that investors track at least two more months of consistent, high-volume registrations to confirm that this isn't just a "dead cat bounce" triggered by festive offers.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline