Ola Electric Shares Rally: Buy, Sell, or Hold After 30% Surge?
Stock market investors are always on the lookout for exciting moves, and recently Ola Electric shares have become the center of attention. Within just five trading sessions, the stock has given almost 30% returns, surprising many who were skeptical about the company’s fundamentals. The rally has been fueled by positive news around government incentives, bullish technical charts, and investor optimism. But the real question on everyone’s mind is—Should you buy, sell, or hold Ola Electric shares right now?
Ola Electric Shares Rally After PLI Certification
The sharp uptrend in Ola Electric shares began after the company received Production Linked Incentive (PLI) certification for its Gen 3 scooters. This approval came from the Automotive Research Association of India under the Ministry of Heavy Industries’ scheme. With this, Ola is now eligible for incentives ranging between 13% to 18% of sales value until 2028.
This certification is considered a big step for Ola Electric as it applies to seven models including their Gen 3 S1 scooters. These models currently account for more than half of the company’s total sales. Management says that this milestone will strengthen both their cost structure and margins, and with this the company will progress faster towards its profitability goal. In simple words, this move has given both investors and customers a fresh wave of confidence in Ola’s future.
Analysts’ Take on Ola Electric Shares
Market experts are divided but overall cautious about the current momentum. Mandar Bhojane, senior technical analyst at Choice Broking, pointed out that Ola Electric has broken out of its falling price channel, and higher highs with strong trading volumes indicate bullish momentum. According to him, dips towards ₹52–50 could be considered healthy corrections and attractive buying zones, while a move above ₹57 could push the stock to ₹62 and even ₹70.
On the other hand, Drumil Vithlani from Bonanza highlighted resistance around ₹55–58 and support near ₹50. He also mentioned that the RSI (Relative Strength Index) is hovering around 68, which means the stock is entering overbought territory, raising chances of a short-term pullback.
Meanwhile, Anirudh Garg of INVasset PMS believes Ola has broken out of a year-long downtrend with strong volumes. He expects the stock to potentially move towards ₹68–70 if it closes above the ₹62 resistance level. However, he also cautioned that since RSI is near 70, investors should be careful of short-term volatility.
Ola Electric’s Financial Health
While the surge in Ola Electric shares looks exciting, the company’s financial performance tells a different story. In the June quarter, Ola reported a net loss of ₹428 crore, which was higher than the same period last year but slightly better than the previous quarter. Revenue dropped sharply by 50% year-on-year to ₹828 crore. On the brighter side, gross margins improved to 25.6%, reflecting better operational efficiency.
At its first annual general meeting, Ola received shareholder approval to reallocate IPO proceeds and extend deployment timelines. While this shows focus on capital discipline and risk management, analysts still feel that execution and market share retention will be the true test for the company in the coming quarters.
Industry Challenges and Ola’s Growth Plans
These are not easy times for the electric vehicle industry. The biggest challenge is rare earth supply, which has become even tighter after China’s export restrictions. Due to this, many EV makers are facing difficulty in handling both production and cost. But Ola Electric has made its strategy clear—the company is developing such motors which will not require rare earth magnets. If this plan is executed successfully, then Ola can get a big competitive edge in the market.
Along with this, Ola is also placing big bets on its new models. During the Sankalp event, Ola announced some fresh scooters, such as S1 Pro Sport, S1 Pro+ 5.2 kWh and Roadster X+ 9.1 kWh. The company plans to start delivering these scooters by the end of 2025 and early 2026. If these launches are successful, then there can be a positive impact on both Ola’s sales volume and profitability.
Ola Electric Stock Performance in 2025
Now if we talk about stock performance, the situation is mixed. Even after the rally of the last few days, Ola Electric shares are still trading below their IPO issue price of ₹ 76 in 2025. Currently the stock is trading above its short-term and medium-term moving averages, which indicates a positive trend. But it is still below the 200-day simple moving average, which clearly shows that a complete recovery may take some time.
For long-term investors, this rally may look slightly attractive, but fundamentals are still under pressure. Hence, patience and caution are required. For short-term traders, this stock may turn out to be an opportunity, especially if it stands above its critical support levels.
Final Thoughts: Should You Buy, Sell, or Hold Ola Electric Shares?
The recent rally of Ola Electric in the market has definitely grabbed everyone’s attention. Government incentives, strong trading volumes and bullish chart patterns have created a positive sentiment. But on the other hand, weak financial results, stretched valuations and industry challenges cannot be ignored.
If you are among those investors who are not afraid of taking risks, then buying the stock on dips can be a good strategy, the only condition is that it stays above the level of ₹ 52-55. However, if you are of a more cautious nature and like to stay on the safe side, then it would be better to wait a bit and see how the company executes its profitability and new scooter launches. For now, Ola Electric is one such stock in which the risk is also high and the reward potential is also quite high.
Disclaimer:
This article is for informational purposes only. It should not be construed as financial advice. Stock market investments always come with risk. Always consult your financial advisor before taking an investment decision.
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