New Delhi, Sep 25 (IANS) Bhavish Aggarwal-run Ola Electric’s stock tanked further to touch its lowest at Rs 103 apiece in the morning trade on Wednesday, amid repeated warnings by trade analysts for retail investors to wait for a more stable entry point.
The share of the electric two-wheeler company nosedived to Rs 103 apiece — a massive 35 per cent drop from its all-time high of 157.40.
Market analysts have already warned individual traders not to go bullish on Ola Electric stock yet, owing to its speculative valuation amid rising competition.
Ola Electric’s market share has been decreasing amid rising competition from rivals like TVS Motor and Bajaj Auto. Ola Electric’s market share dropped further to 31 per cent last month.
Last month, the electric vehicle firm clocked its lowest monthly sales, dropping 34 per cent sequentially to 27,506 units.
Trade analysts said the stock is currently loss-making and trading at high valuations.
“While the growth outlook remains strong, concerns over valuation and competition mean only aggressive investors should consider staying invested,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
According to market watchers, the stock value is inflated and will further correct itself and investors with high-risk appetite should only go for it.
After an aggrieved Ola Electric customer torched its showroom in Karnataka this month, the company’s social media platforms were flooded with complaints about its EV scooters.
The accused bought the new Ola electric scooter recently and it developed snags, requiring repeated visits to the showroom for repair work. Frustrated with repeated arguments following the breakdown of his vehicle, he bought petrol and poured it on the showroom and set it on fire.
As per reports, Ola Electric receives around 80,000 complaints monthly, overwhelming its service centres. On peak days, complaints even rise to 6,000-7,000.
–IANS
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