OLAELEC - Investment Analysis

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

Investment Rating: 2.1

⚡ Fundamental Analysis: Ola Electric Mobility Ltd. (OLAELEC)

Ola Electric is a high-profile EV startup with ambitious goals but currently weak financials. The company is in a heavy investment phase, burning cash, and lacks profitability. While it may have long-term potential, the current fundamentals are highly speculative.

Metric Value Implication

P/E Ratio Not available No earnings — not profitable

PEG Ratio Not available No meaningful growth vs. valuation metric

ROE / ROCE -108% / -28.1% Extremely poor — capital destruction

Dividend Yield 0.00% No income — purely speculative

Debt-to-Equity 0.69 Elevated — high leverage for a loss-making firm

EPS ₹-5.34 Negative — consistent losses

Profit Growth (QoQ) Improved, but still negative — ₹-428 Cr. vs ₹-870 Cr.

📉 Technical & Trend Analysis

Current Price: ₹41.7

DMA 50 / DMA 200: ₹45 / ₹61 — trading below both, bearish trend

RSI: 45.9 — neutral zone

MACD: -0.91 — bearish momentum

Volume: High — speculative interest, but not necessarily bullish

✅ Is It a Good Long-Term Investment?

Not currently. Ola Electric is a high-risk, high-reward play. While the EV sector has long-term promise, the company’s financials are deeply negative, and it lacks a clear path to profitability. Suitable only for speculative investors with high risk tolerance.

🎯 Ideal Entry Price Zone

Buy Zone: ₹35–₹40 (only for speculative positioning)

Near technical support and psychological bottom

Avoid unless there's clear improvement in ROCE and EPS trajectory

Wait for signs of operational turnaround or positive EBITDA

🧭 Exit Strategy & Holding Period

If you're already holding

Holding Period: 6–12 months (speculative horizon)

Exit Strategy

Exit near ₹70–₹80 if there's a short-term rally or news-driven spike

Hold only if losses narrow and ROCE improves toward breakeven

Reassess quarterly — exit if losses persist or debt increases further

Would you like a comparison with other EV players like Tata Motors (EV division), JBM Auto, or Sona BLW to explore more stable long-term EV investments?

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