Ola Electric shares slip below Rs 100. Buy the dip or avoid?

Ola Electric Mobility Ltd shares dipped below the Rs 100 mark on Monday, falling 4.26% to a day-low of Rs 97.85.
The stock was down 2.59% at Rs 99.55 on the Bombay Stock Exchange (BSE), marking a sharp decline from its record high of Rs 157.53 on August 20, 2024.
Despite this recent drop, the stock is trading significantly higher compared to its initial public offering (IPO) price of Rs 76.
The company, which primarily manufactures electric vehicles and key EV components like battery packs and motors, has been making strides in its service network.
Ola Electric recently announced plans to double its company-owned service centers to 1,000 by December 2024.
Additionally, it launched an EV Service Training Program aimed at training 1 lakh third-party mechanics as part of its ‘Network Partner Program.’
Beginning on October 10, 2024, the company will also introduce a quick-service guarantee, offering backup Ola S1 scooters to customers if their service case takes longer than a day.
While these moves are positive, analysts are advising caution regarding the stock’s recent dip.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, told Business Today that Ola Electric is in a consolidation phase after delivering over 100% returns post-listing.
“Investors with a long-term view can continue to hold, but for the medium- to short-term, it’s essential to maintain a trailing stop loss,” Bathini said.
However, Kushal Gandhi, Technical Analyst at StoxBox, told the publication that investors should avoid capitalising on the dip, attributing the stock’s downward movement to profit-booking and describing it as part of the “IPO disease” phenomenon, where newly listed stocks experience a surge followed by a steep decline.
He recommended patience until there are clearer indicators of a turnaround.
In the broader context, Ola Electric’s recent quarterly results show a widening net loss of Rs 347 crore for the April-June quarter (Q1 FY25), up from Rs 267 crore in the same period last year. Despite these challenges, the company’s long-term growth prospects, bolstered by its focus on electric vehicle manufacturing and service expansion, continue to attract attention from investors.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)