HSBC maintains ‘buy’ rating at Ola Electric, sets target price at Rs 110

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. investment bank based its decision on a follow-up assessment of Ola’s service centres, which showed improvements in operational efficiency and customer service.

According to HSBC’s report, Ola Electric has me strides in streamlining its service centres, reducing backlog by 20-30 per cent month-over-month. Observations indicate that vehicle outflow w slightly surpasses inflow, signalling an easing of congestion. 

HSBC attributed this improvement to an increase in technicians across both large and small service stations, although hiring process has been slower than anticipated due to a short of skilled labour in sector.

HSBC ted that Ola Electric’s appeal lies in its early vant within electric vehicle (EV) market, especially in EV bike segment, where it is considered at least two to three years ahe of its competition. 

Furrmore, Ola’s in-house battery initiative could boost its market position, providing a sustainable competitive edge. report shared that despite recent fluctuations in stock price, Ola Electric remains a high-risk, high-reward proposition, with substantial growth potential contingent on success of its EV and battery ventures. 

HSBC’s report credits company’s proactive measures to dress service challenges and fortify its position in India’s evolving EV landscape.