⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
OLAELEC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 1.9
| Stock Code | OLAELEC | Market Cap | 13,894 Cr. | Current Price | 31.5 ₹ | High / Low | 77.0 ₹ |
| Book Value | 25.0 ₹ | Dividend Yield | 0.00 % | ROCE | 0.59 % | ROE | -0.58 % |
| Face Value | 10.0 ₹ | DMA 50 | 37.8 ₹ | DMA 200 | 48.2 ₹ | Chg in FII Hold | 0.84 % |
| Chg in DII Hold | 0.50 % | PAT Qtr | -14.0 Cr. | PAT Prev Qtr | -11.0 Cr. | RSI | 33.6 |
| MACD | -1.86 | Volume | 4,40,81,415 | Avg Vol 1Wk | 5,90,22,387 | Low price | 30.8 ₹ |
| High price | 77.0 ₹ | Debt to equity | 0.04 | 52w Index | 1.60 % | Qtr Profit Var | -27.3 % |
| EPS | -0.11 ₹ | Industry PE | 27.2 |
📊 Core Financials
- Revenue & Profitability: Company reported losses with PAT at -₹14 Cr. vs. -₹11 Cr. previously, showing worsening performance (-27.3% variation).
- Return Metrics: ROE at -0.58% and ROCE at 0.59% highlight poor capital efficiency and negative shareholder returns.
- Debt Position: Debt-to-equity ratio at 0.04 indicates very low leverage, but losses limit financial strength.
- Cash Flow: No dividend yield (0%), reflecting absence of shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Current Price ₹31.5 vs. Book Value ₹25 → ~1.26, slightly above book value but not justified given losses.
- PEG Ratio: Not meaningful due to negative EPS and lack of growth visibility.
- Intrinsic Value: Current valuation appears speculative, with intrinsic value lower than market price due to weak fundamentals.
🚗 Business Model & Competitive Advantage
- Operates in electric vehicle manufacturing, a high-growth industry with strong future potential.
- Competitive advantage lies in brand recognition and government EV push, but profitability remains elusive.
- High volumes traded indicate speculative interest rather than fundamental strength.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Risk-tolerant investors may consider accumulation near ₹28–32, close to 52-week low.
- Long-Term Holding: Only suitable for speculative investors betting on EV industry growth; fundamentals do not support long-term holding at present.
Positive
- Low debt-to-equity ratio (0.04), ensuring minimal leverage risk.
- FII holdings increased (+0.84%), showing some foreign investor interest.
- DII holdings also increased (+0.50%), reflecting domestic institutional support.
Limitation
- Consistent quarterly losses with worsening PAT.
- Negative ROE (-0.58%) and very low ROCE (0.59%).
- No dividend yield, limiting investor returns.
- Stock trading below DMA 50 (₹37.8) and DMA 200 (₹48.2), indicating bearish trend.
Company Negative News
- Quarterly losses widened, showing deteriorating financial health.
- EPS at -₹0.11, reflecting negative earnings.
Company Positive News
- Institutional interest increased (FII +0.84%, DII +0.50%).
- RSI at 33.6 indicates oversold condition, potential for short-term rebound.
Industry
- EV industry P/E at 27.2, but OLAELEC has no meaningful P/E due to losses.
- Sector outlook supported by government EV adoption policies and rising demand for sustainable mobility.
Conclusion
- OLA Electric shows promise in the EV sector but current fundamentals are weak with consistent losses.
- Valuation appears speculative, supported mainly by industry sentiment rather than earnings.
- Best considered for speculative entry near ₹28–32, with cautious outlook until profitability improves.
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