August was very good for Ola Electric. The company’s shares increased by about 5%, which is the largest increase in any one month after the listing. This increase has been shown due to the expectations of the government’s production-linked insertion (PLI) scheme and interest from the new institutional investors.

While the market is falling, the shares of Ola are increasing for two weeks – 5.5% last week and 5.5% this week. There are two major reasons for this increase-one, the expectation of the government’s production-linked institute (PLI) plan, and the second, the increasing interest of the large investors in the company.

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Large agreements increased confidence

BP Equipment Research Analyst Sagar Shetty said that last week, the company’s shares became about 3 big ‘bulk deal’, which has increased the confidence of investors. In addition, the company will also start battery production in the end of October, which is expected to increase business and profit in the future.

Recently, the company informed that she had received a PLI certificate for Jen-1 scooters. This certificate covers all its 3 scooter models, which are currently most of the company’s total sales. After this certificate, the company is now eligible to get 5% to 5% incentive (government support) at its fixed sales prices by 5. This will help the company to increase profit.

Investors’ trust returned

According to Samoco Securities Expert Jahul Prajapati, the approval has increased the hope of improving the company’s profit and margin, which has returned the trust of investors. However, the shares of Ola’s shares were not easy so far. On August 7, the stock was listed on 1949.

In the same month, he reached 19.99, but later on July 7, he continued to fall to 199.9. Currently, the share of Ola Electric Mobility is at Rs. There were several reasons for this big decline in the stock, such as anxiety about the falling market share of the company, doubts about sales statistics, questions about the quality of the product and the lack of required certificates in many showrooms.

Stocking cheaper, but expected to remain volatile

Cholamandallam Research of Securities Dharmesh Kant says that after such a fall, Ola’s share came to a very cheap level – around 90, which was 5% less than his IPO price. According to the company, in June, the company has also made an operating profit. Dharmesh Kant believes that it is not sure that this will last a long time. He says sales have not yet been stable, so the stock is expected to remain unstable.

At the same time, Sagar Shetty of BP equity is a little more positive about the stock. He says the company’s latest quarterly results are good and now a solid base is seen behind the performance. Shetty said that the customer was not satisfied with the scooter in the past, but no complaint has been registered in 90% of vehicles. Because of this, both customers and investors are slowly returning.

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