Ola Electric Mobility hits 20% upper limit on new launches, Citi report

Ola Electric Mobility's stock surged 20 per cent on Wednesday, hitting the upper trading limit, as investors snapped up shares amid optimism about the company's new affordable electric vehicle offerings. This positive sentiment was further boosted by a note from Citi, which deemed Ola’s long-term prospects "attractive."

 

Shares of the company ended at Rs 88.2, extending its two-day advance to 27 per cent. Initiating coverage on the stock, Citi set a target price of Rs 90.

 

“Our positive stance on Ola —largest e2W player in India with 38 per cent market share (FY25YTD) — is predicated on a wide product portfolio, strong R&D focus, significant vertical integration (including Li-ion cell manufacturing), and large scale of production; soon to-be-launched motorcycles and e3Ws potential volume boosters,” said the US-based brokerage

 

“We admit service perception has been negative of late, but expect it to subside over the medium term as the back-end supply chain catches up with volume growth,” it said in a note.

 

A day earlier, Ola announced the launch of two new ranges of electric scooters with prices starting at Rs 39,000—its cheapest offering yet.