Up 60% in a month! Ola Electric shares to be in focus next week on 20% growth in April sales

Shares of electric two-wheeler manufacturer Ola Electric are expected to hog the limelight on Monday, 4 May, as the sales momentum extended in April following a sharp rebound in March.

This is likely to further drive investor interest in the counter, which recorded its biggest monthly gain last month following an over 60% increase.

Ola Electric shares snapped their 6-month losing streak in April as the counter rallied a whopping 61.63% on a sharp turnaround in its sales performance. The new-age stock listed in August 2024 and has emerged as one of the biggest wealth destroyers in recent times as various concerns from declining volumes, poor after-sales services, falling market share and deepening losses plagued investors.

During this period, Ola Electric's stock even hit a low of ₹21.21 per share, with its market cap wiping off nearly ₹9,000 crore from investor wealth.

Ola reports strong April sales numbers

However, this souring mood against Ola stock is starting to reverse, mainly boosted by a strong turnaround in March sales numbers. The April sales figures signal that demand may be stabilising after a long period of disappointment.

Ola Electric on 1 May announced its April sales numbers, which were 20% higher on a month-on-month (MoM) basis. Ola's registrations rose to 12,166 units last month, up from 10,133 units in March, according to VAHAN data.

According to the press release, Ola Electric was the only leading EV two-wheeler brand to grow MoM in April as the overall industry faced a 22% decline, suggesting a strengthening foothold in the market.

Ola said that its EV motorcycle portfolio is gaining traction, with Roadster X ramping up especially in the large motorcycle markets such as Uttar Pradesh, Bihar, and Madhya Pradesh. The company further said that Ola's 4680 Bharat Cell-powered products are also seeing increasing adoption.

Analysts told Mint last month that it is still too early to say that the worst is over. According to them, the bigger issue remains operations, especially service quality. This has been the main reason customer confidence weakened earlier. Ola has claimed that more than 80% of vehicles are now being serviced on the same day and that parts availability has improved, which is positive if sustained.

Vinit Bolinkar of Ventura had recommended that investors track at least two more months of consistent, high-volume registrations to confirm that this isn't just a "dead cat bounce" triggered by festive offers.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.