EV stock under Rs 60 in green after EBITDA guidance for Q1FY26
The company has a market cap of over Rs 23,000 crore and stock is down by 67 per cent from its 52-week high of Rs 157.53 per share.
On Wednesday, shares of Hyundai Motor Company’s portfolio EV-stock gained 3.28 per cent to Rs 52.58 per share from its previous closing of Rs 50.91 per share. The shares of the company saw a spurt in volume by more than 1.01 times on BSE.
The stock name is Ola Electric Mobility Ltd.
Ola Electric Mobility Limited has concluded its Network Transformation and Opex Reduction Program, initiated in November 2024, achieving a substantial monthly cost reduction of ₹90 crores. This initiative, designed to enhance both cost efficiency and customer experience, has streamlined operations significantly. The program's impact will fully materialize from April 2025, with the company anticipating achieving Automotive segment EBITDA breakeven in the first quarter of the 2026 fiscal year.
The program's success is attributed to various operational improvements, including the consolidation of distribution by eliminating regional warehouses and shipping directly from the factory. Additionally, the automation of registration and other processes, alongside productivity gains in sales and service, has yielded tangible results. Notably, average vehicle inventory has decreased from 35 to 20 days, and customer delivery times have been reduced from 12 days to 3-4 days.
Furthermore, the transformation of the vehicle registration process has progressed to its final stages, leading to a significant increase in daily registrations, now exceeding 800 per day. This improvement surpasses the average daily sales recorded in January and February 2025, demonstrating the program's effectiveness. With all aspects of the program implemented, Ola Electric is poised for long-term profitable growth, emphasizing operational excellence, financial discipline, and an enhanced customer experience.
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About the Company
Ola Electric Mobility Limited is a prominent Indian EV manufacturer renowned for its vertical integration of technology and manufacturing. The company's flagship, the Ola Futurefactory, is a state-of-the-art facility producing EVs and key components like battery packs, motors, and frames. Ola's global R&D efforts, spanning India, the UK, and the US, drive innovation in EV products and core components. The company is also establishing a comprehensive EV hub in Tamil Nadu, comprising the Future Factory and the upcoming Gigafactory. This hub is complemented by the Bengaluru-based Battery Innovation Centre, which is dedicated to advancing cell and battery technology. Ola's direct-to-customer distribution network, encompassing over 750 stores and a robust online presence, positions it as the largest company-owned automotive experience centre network in India.
As of December 2024, the shareholding pattern, Hyundai Motor Company own a 2.47 per cent stake in Ola Electric Mobility Ltd. The company has a market cap of over Rs 23,000 crore and stock is down by 67 per cent from its 52-week high of Rs 157.53 per share. Investors should keep an eye on this EV stock.
Disclaimer: The article is for informational purposes only and not investment advice.