As Elon Musk and Tesla look to expand in India, thereby furthering the EV revolution, Ola Electric, one of India’s largest electric scooter makers, has had its fortunes dip at Dalal Street.
The company has endured successive weeks of decline over the recent past. This week also ended for the company, with a decline in its overall value.
Week of Decline
However, the overall decline was relatively low, compared to previous weeks.
Over the past five trading sessions, the company shares have dipped by 0.80 per cent or Rs 0.49. In the past week, the company shares, which were listed only in August of 2024, hit an all-time low at Rs 58.58 per share.
Just on Friday, the last day of the trading week, the company shares dipped by a mammoth 1.64 per cent or Rs 1.01. This took the overall company shares to Rs 60.70, a market closed for the week.
Shares Fall in Double Digit Over A Month
Not just that, the company shares have witnessed a massive fall in the past 1 month of trade.
In the past month, the company shares have dipped by a cumulative of 18.32 per cent or Rs 13.61.
This is far off from its glory days when the company touched its 52-week high of Rs 157.40 per share.
Why Is It Happening?
One of the reasons behind the slump is the company’s weak Q3 performance.
The company’s long-term growth has been under the radar, as operating profit has grown by an annual rate -of 14.49 per cent over the last 5 years
In addition, a larger market trend appears to be placating the stakes here. Here, institutional investors have decreased their stake by 2.69 per cent. In the previous quarter, the same constituent collectively held 6.65 per cent of the Bengaluru-based company.
This comes at a time, when Bhavish Aggarwal, a tech company, has tried to focus on his other businesses, including Krutrim AI, apart from looking to put out a much-anticipated IPO for its Ola Customer (cabs) company.
