8 hours ago
HomeMarket NewsOla Electric shares gain over 20% in two sessions — Here's what is driving the surge
Incidentally, August 20 is the day when shares of Ola Electric had made their post-listing high of ₹157 last year. Since then, the stock is down over 70%.
Shares of Ola Electric Mobility Ltd. extended gains on Wednesday, August 20. surging over 14%, thereby extending their gains from Thursday's 9% advance.
The stock has now gained in four out of the last five trading session. Thursday's surge in Ola Electric came on volumes that were the highest in a month. Thursday's session saw 58 crore shares of Ola Electric change hands, compared to the 20-day average of 11 crore shares.
Out of the total number of shares traded on Thursday, 14.35 crore shares were marked for delivery, which is the highest in two months, which means 24% of the total shares traded were marked for delivery.
At the end of the June quarter, foreign institutional investors held 34.7% stake in the company, down from 38% in the previous quarter and 38.73% in the June quarter last year. Meanwhile, domestic investors held 23.4% in Ola Electric, higher than the 20% stake they held in the previous quarter and 19.4% during the June quarter last year.
Ola Electric had reported a weak first quarter in comparison to the previous year, results were better when compared to the previous quarter.
Its losses narrowed and revenue improved compared to the previous quarter.
Its gross margin improved by 1,100 basis points sequentially and by 740 bps from the previous year. Gross margins stood at 26% at the end of the June quarter, while the management sees the figure to be between 35% to 40% for the full year.
The company sees its revenue growth in the -7% to 4% range in FY26. Its auto business is also likely to turn EBITDA positive from the second quarter. Fully-year auto EBITDA is likely to be above 5%, the company has guided.
Ola Electric shares are trading 13.7% higher at ₹51 apiece around 10.20 am on Wednesday. The stock has gained nearly 29% from its 52-week low of ₹39.6 apiece, which it had hit in July this year. It has declined 40% this year, so far. Incidentally, August 20 is the day when the stock had made its post-listing high of ₹157 last year. Since then, the stock is down over 70%.
Also Read: Nazara Tech shares fall 6% after online gaming bill clears; PL sees sharp cuts to target
