New scooter launches drive Ola shares up by 35%

Shares of Ola Electric Mobility jumped 6% on 28 November, marking the fifth consecutive session of gains. This rally follows the company’s launch of its most affordable electric scooters yet — the S1 Z and Gig range — priced from ₹39,000. Analysts suggest the new models are attracting positive sentiment, making now a compelling time to invest in stocks within the EV segment.

Stock performance strengthens amid rising investor confidence

As of 9:49 AM, Ola Electric’s shares were trading at ₹91.89 on the NSE. The stock has surged 35% in just five trading sessions, underscoring growing investor confidence. Industry analysts have issued a ‘buy’ recommendation for Ola’s shares, citing a price target of ₹90. 

They highlight the company’s impressive 38% market share in the EV two-wheeler space and its robust product portfolio. Ola’s vertical integration, including its lithium-ion cell manufacturing, further solidifies its competitive advantage.

Upcoming launches signal sustained growth

Ola’s plans to expand into electric motorcycles and three-wheelers (E3Ws) are expected to drive further sales growth. Analysts predict these launches will significantly boost volumes and support Ola’s leadership in the high-growth EV market.

While service-related challenges persist, experts believe these issues will ease as the supply chain stabilises. Ola’s valuations are based on a 4x FY26 EV/Sales multiple, reflecting confidence in its long-term potential.

Profitability within reach

Ola is also expected to achieve profitability this year, a milestone that could elevate its position in the automobile industry. Analysts foresee the company maintaining a 35-40% market share in the EV segment, driven by continuous product innovation.

Key takeaways

1. Ola Electric’s shares rose 6%, continuing a five-session streak of gains.
2. New scooter launches priced from ₹39,000 have bolstered investor sentiment.
3. Holding 38% market share, the company leads in the EV two-wheeler segment.
4. Upcoming launches in motorcycles and E3Ws are expected to drive growth.
5. Analysts suggest now is a favourable time to invest in stocks like Ola, citing strong prospects.

As Ola Electric continues to expand its offerings and address operational challenges, it presents a strong case for investors looking to invest in stocks within the EV sector. With profitability on the horizon, the company remains a key player to watch.