OLECTRA - Investment Analysis

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

Investment Rating: 4.0

🚍 Fundamental Analysis: Olectra Greentech Ltd. (OLECTRA)

Olectra is a promising player in the electric mobility space, particularly in electric buses and related infrastructure. It combines strong capital efficiency with low debt and high growth potential, though its valuation is currently stretched.

Metric Value Implication

P/E Ratio 84.4 Very high — priced for aggressive growth

PEG Ratio 1.52 Slightly expensive — growth is priced in

ROE / ROCE 14.2% / 20.4% Strong — efficient capital deployment

Dividend Yield 0.03% Negligible — not an income play

Debt-to-Equity 0.24 Low — financially sound

EPS ₹16.9 Decent — supports growth narrative

Profit Growth (QoQ) -55.3% Volatile — recent dip after strong previous quarter

📉 Technical & Trend Analysis

Current Price: ₹1,430

DMA 50 / DMA 200: ₹1,259 / ₹1,318 — trading above both, bullish trend

RSI: 66.6 — approaching overbought zone

MACD: 62.3 — strong bullish momentum

Volume: Below average — momentum cooling off

✅ Is It a Good Long-Term Investment?

Yes — with caution. Olectra is well-positioned in the EV infrastructure space and has strong financial metrics. However, the stock is richly valued, and earnings volatility could lead to sharp corrections. Ideal for growth-oriented investors with medium-to-high risk tolerance.

🎯 Ideal Entry Price Zone

Buy Zone: ₹1,250–₹1,350

Near DMA levels and below RSI overbought zone

Accumulate gradually if PEG drops below 1.3 and ROCE sustains above 18%

Avoid chasing above ₹1,500 unless earnings growth accelerates

🧭 Exit Strategy & Holding Period

If you're already holding

Holding Period: 3–5 years — to capture EV adoption and infrastructure expansion

Exit Strategy

Partial Exit near ₹1,750–₹1,800 if P/E remains >80 and PEG >1.5

Hold if ROCE stays >20% and debt remains low

Reassess if quarterly profits continue to decline or valuation becomes unsustainable

Would you like a side-by-side comparison with other EV infrastructure or clean-tech stocks like KPIT Technologies, Sona BLW, or JBM Auto to build a diversified green mobility portfolio?

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