HSBC on Ola ELectric:HSBC Global Research has reiterated its outlook on Ola Electric, maintaining a ‘buy’ rating and setting a target price of Rs 110 per share. The investment bank based its decision on a follow-up evaluation of Ola’s service centers, which showed improvements in operational efficiency and customer service.
According to the HSBC report, Ola Electric has made progress in rationalizing its service centers, reducing backlog by 20 to 30 percent month on month. Observations indicate that vehicle exit now slightly exceeds entry, indicating an easing of congestion.
HSBC attributed this improvement to an increase in technicians at both large and small service stations, although the recruitment process has been slower than expected due to a shortage of skilled labor in the sector.
HSBC noted that Ola Electric’s appeal lies in its head start within the electric vehicle (EV) market, especially in the EV bike segment, where it is considered to be at least two to three years ahead of its competition.
Additionally, Ola’s in-house battery initiative could boost its market position, providing a sustainable competitive advantage. The report shared that despite recent fluctuations in share price, Ola Electric remains a high-risk, high-reward proposition, with substantial growth potential depending on the success of its electric vehicle and battery businesses.
The HSBC report credits the company’s proactive measures to address service challenges and strengthen its position in India’s changing electric vehicle landscape.
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