Explained: Why Ola Electric shares jumped over 6% today

Ola Electric Mobility shares surged more than 6% on Tuesday, driven by positive coverage from two major foreign brokerages, Goldman Sachs and BofA Securities.
Both Goldman Sachs and BofA Securities have initiated coverage with ‘Buy’ ratings, projecting significant upside potential for Ola Electric’s stock.
Goldman Sachs, in its analysis, suggested a target price of Rs 160, indicating a potential 50% increase from Monday’s closing price of Rs 107.
The brokerage expects Ola Electric to achieve EBITDA breakeven by FY27, forecasting revenue growth of more than 40% annually over FY24-30.
By FY30, Goldman Sachs predicts that Ola will achieve an EBITDA margin of 11.9% and a return on invested capital (ROIC) of 27%. It noted that Ola Electric is well-positioned to benefit from long-term structural growth trends in India’s electric two-wheeler market.
BofA Securities also offered an optimistic view, with a target price of Rs 145, suggesting a 36% upside. The brokerage highlighted Ola Electric’s leadership in technology and cost efficiency, which it believes gives the company a competitive edge.
BofA Securities acknowledged concerns around battery manufacturing but emphasized that it remains a worthwhile bet.
Meanwhile, HSBC initiated coverage on Ola Electric last month with a ‘Buy’ rating and a target price of Rs 140. However, it voiced caution, expressing concerns about Ola’s recent loss of market share, potentially due to competition offering lower-cost electric two-wheeler variants. HSBC warned that if this trend continues, there could be a 15-20% downside risk to its volume estimates for FY25 and FY26, but it maintained its positive rating on the stock.
At 11:12 am, shares of Ola Electric were trading 5.20% higher at Rs 113.25 on the BSE.
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