EV-stock under Rs 80 zooms 10 per cent after hitting 52-week low; Registers 38.5 per cent growth in revenue during Q2FY25; deliveries up by 73.6 per cent YoY
The shares of the company saw a spurt in volume by more than 2 times on BSE.
On Monday, shares of Hyundai Motor Company’s portfolio EV-stock gained 10 per cent to an intraday high of Rs 77.59 per share after hitting 52-week low of Rs 70.54. The shares of the company saw a spurt in volume by more than 2 times on BSE.
The stock name is Ola Electric Mobility Ltd.
Ola Electric Mobility Limited is a leading electric vehicle (EV) manufacturer in India, specialising in the vertical integration of technology and manufacturing for EVs and their components, including battery cells. Operations are centred around the Ola Future factory, where production of EVs and critical components like battery packs, motors, and vehicle frames are undertaken. Ola’s R&D efforts span India, the UK, and the US, focusing on innovation in EV products and core components.
Ola is also developing an extensive EV hub in Tamil Nadu, which includes the Ola Future factory and the upcoming Ola Gigafactory. This hub is supported by Ola’s Bengaluru-based Battery Innovation Centre (BIC), dedicated to advancing cell and battery technology. Ola maintains a direct-to-customer distribution network with more than 750 stores across India, as well as a robust online presence, making Ola Electric the largest company-owned network of automotive experience centres in the country.
Ola Electric has demonstrated impressive growth in its Q2 FY25 results. Revenue surged by 38.5 per cent to Rs 1,240 crore, driven by strong demand for its electric scooters and strategic initiatives. Gross margin significantly improved to 20.3 per cent, a 12-percentage point increase year-over-year, benefiting from economies of scale, optimized manufacturing, and the success of its mass-market portfolio. The company's focus on cost efficiency, with operating expenses marginally lower by 1 per cent QoQ, positions it for improved operating leverage and profitability.
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Vehicle deliveries increased by a substantial 73.6 per cent year-over-year, reaching 98,619 units in Q2 FY25. The mass-market scooter portfolio, priced below Rs 1 lakh, has been a key driver of growth, while the premium portfolio continues to contribute significantly to revenue. Ola Electric's expansion of its distribution network, with plans to increase company-owned stores to 2,000 by March 2025, will enhance accessibility and improve after-sales service.
Ola Electric's growth ambitions extend beyond electric scooters. The company aims to introduce 20 new products across two- and three-wheeler categories over the next two years, with at least one new launch every quarter. This aggressive product strategy will cater to a diverse range of customer preferences and drive further market share gains. The upcoming launch of the Roadster motorcycle series in March 2025 signifies the company's entry into the premium motorcycle segment. Additionally, Ola Electric's commitment to vertical integration, including cell manufacturing, is gaining momentum, with the Gigafactory operational and trial production of cells underway.
As of September 2024, 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 33,000 crore. Investors should keep an eye on this EV stock.
Disclaimer: The article is for informational purposes only and not investment advice.