Ola Electric share slides as expert flags weak fundamentals - Check target and stop loss

Ola Electric’s stock continued its downward slide, dropping to around Rs 31 apiece as market experts warned that the company’s weakening fundamentals and declining sales have left many investors deeply trapped.

Kunal Parar of Choice Equity Broking said the absence of corrective action from the company’s management has added to uncertainty, advising shareholders to hold the stock with a strict stop‑loss and consider averaging only if it sustains above Rs 35.

Parar said it is "hard to say by when the shares might trade in positive territory due to the very weak fundamentals of the company. The automaker is also suffering from routine complaints, for which there has been no disciplinary action."

He added, "Furthermore, even after multiple concerns, there has been no assurance from the company's promoters regarding improvements in services."

For the stock call, he said, "In terms of the present level, if the stock touched Rs 35 apiece, then there should be a strict stop loss at Rs 30, because I do not think the stock will perform any better in the coming two years. However, the stock can see a bounceback between Rs 45 to Rs 58 apiece later."

Ola Electric’s stock has sharply underperformed the broader market across all major timeframes, reflecting sustained selling pressure and deteriorating investor sentiment. The stock dropped 1.98 per cent in the past week, 27.28 per cent over the last month, and is down 15.54 per cent year‑to‑date, highlighting consistent weakness. Over the one‑year period, Ola Electric has plunged 55.89 per cent, erasing significant shareholder value.

In contrast, the Nifty 500 benchmark has remained relatively resilient, delivering gains in three of the four comparable periods. The index rose 1.54 per cent over the past week and posted a healthy 8.13 per cent one‑year return, while the one‑month and year‑to‑date declines of 2.40 per cent and 1.99 per cent were modest compared to Ola Electric’s steep fall. The sharp divergence underscores how company‑specific concerns, not broader market conditions, are driving Ola Electric’s prolonged underperformance.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)