New Delhi, May 30 || Kotak Securities on Friday slashed its share price target on Ola Electric by 40 per cent to Rs 30 from Rs 50, citing continued losses and rising competition.
Ola Electric Mobility shares nosedived 9.7 per cent to their intraday low of Rs 48.07 on the BSE during the trade after the electric two-wheeler maker reported a sharp rise in losses for the March quarter.
Kotak Securities flagged two main concerns. It expects EBIDTA losses to continue, driven by weakening brand equity and intensified competitive pressure.
Second, Kotak highlighted that Ola Electric’s future depends on scaling up volumes and executing its motorcycle plans. The firm, however, warned that the motorcycle foray faces execution and credibility challenges.
The brokerage added that the company needs to scale up volumes to avoid a looming cash crunch.
Bhavish Aggarwal-led electric vehicle maker's financial performance took a sharp beating in the fourth quarter (Q4) of FY25, as the Bhavish Aggarwal-led electric vehicle maker on Thursday reported a steep drop in revenue and a two-fold increase in net losses on year-on-year (YoY) basis.