OLAELEC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 1.7

Ola Electric Mobility Ltd. appears to be in a deep investment and growth phase, with significant losses and negative return ratios. While it's a high-risk bet on India's EV revolution, current fundamentals point to a very fragile financial position.

🚨 Core Financial Overview

ROE: -108% and ROCE: -28.1% — extremely negative, indicating massive capital destruction and poor operational efficiency.

EPS: ₹-5.34 — persistent losses cast doubt on near-term profitability.

PAT Qtr Improvement: ₹-870 Cr. → ₹-428 Cr. — shows narrowing losses, but still in deep red.

Debt-to-equity: 0.69 — moderately leveraged; sustainable only if revenue ramps up rapidly.

Dividend Yield: 0.00% — no distributions expected in current phase.

📊 Valuation Indicators

Metric Value Comment

P/E Ratio Not applicable Negative earnings prevent meaningful valuation

P/B Ratio ~3.56 Relatively high despite poor fundamentals

PEG Ratio Not available No meaningful earnings growth data

Intrinsic Value Estimated ₹25–₹30 Significantly overvalued given current financials

⚡ Business Model & Competitive Footing

Engaged in EV manufacturing, focused on two-wheelers and battery innovation.

Leverages tech-first approach with ambitious plans for cell production, giga factories, and exports.

Still early-stage with intense capex, margin pressure, and scale challenges.

Faces competition from Ather, Hero Electric, and legacy OEMs entering EV space.

Advantage: tech branding, ambitious infrastructure build-out, and early-mover EV goodwill.

📉 Technical Momentum

RSI: 45.9 — neutral zone; no strong direction.

MACD: -0.91 — bearish sentiment persists.

Price below DMA 50 & DMA 200 — indicates downtrend continuation.

Volume significantly lower than weekly average — waning investor interest.

🎯 Entry Zone & Holding Strategy

Suggested Entry Zone: ₹35–₹38 — speculative entry only for long-term believers in Ola’s EV thesis.

Long-Term Outlook

High volatility expected; not suited for conservative investors.

Consider only if comfortable with multi-year horizon and high uncertainty.

Key monitors: production milestones, cell tech progress, revenue visibility, and government EV subsidies.

Want to compare Ola Electric with Ather or Bajaj Auto’s EV initiatives for a clearer industry landscape and innovation edge? I can chart out tech, financial runway, and scale forecasts to help frame the bigger picture. ⚡🔋🏍️

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