Olectra Greentech shares hit Rs 1,400-plus fresh all-time high levels today; stock zooms 160% in six months

Shares Olectra Greentech Ltd extended their sharp gains in Monday's trade to breach the Rs 1,400 mark for the first time ever. The stock today surged 14.42 per cent to hit a new 52-week high of Rs 1,247.85 over its previous close of Rs 1,043.30. The counter, however, trimmed its gains and was last seen trading 4.74 per cent higher at Rs 1,289.70 amid a chopping trading session today. The multibagger electric bus manufacturer's scrip has gained more than 160 per cent in the past six months. Recently, the company bagged an order for supply of 5,150 electric buses valued at around Rs 10,000 crore.

Around 7.01 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 1.95 lakh shares. Turnover on the counter stood at Rs 94.57 crore, commanding a market capitalisation (m-cap) of Rs 10,572 crore.

Olectra, in an exchange filing, said: "Consortium of Olectra and EVEY has been awarded with a Letter of Intent from MSRTC relating to supply, operation and maintenance of 5,150 electric buses and allied Electrical and Civil Infrastructure on gross cost contract basis."

"EVEY shall procure these buses from Olectra Greentech and which shall be delivered over a period of 24 months. Value of these 5,150 electric buses supply would be approximately Rs 10,000 crore for Olectra. Maintenance of these buses shall also be undertaken by the Olectra during the contract period," it added.

Technical analysts largely felt that the stock looked 'bullish' but 'overbought'.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "The stock has seen a strong rally with strong momentum on its side. It is hovering in uncharted territory, with strong support placed around the Rs 990-1,000 zone in the short term, which should provide a cushion to any near-term blip. Considering the ongoing trend, the stock is expected to continue its upward journey in the near period."

Ravi Singh, Vice-President and Head of Research at Share India, said "The counter is showing a good rally after a brief consolidation in past months. The price movement in the counter is well supported by robust volumes."

AR Ramachandran from Tips2trades said, "Olectra Greentech is bullish but also very overbought on the daily charts."

VLA Ambala, Research Analyst at Stock Market Today, said, "Currently, it is in overbought zone. So, be ready for averaging in case of a pull back. The expected range for this will be Rs 1,020 to Rs 970."

The company is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL) and manufactures electric buses in India. Olectra is also India's largest silicone rubber/composite insulators manufacturer for power transmission and distribution networks.

Meanwhile, Indian equity benchmarks traded higher in today's early deals, led by gains in energy, state-owned banks and metal stocks.

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