Olectra Greentech shares tanked 5% today; what's next for this multibagger EV stock?

Shares of Olectra Greentech slipped 4.85 per cent on Monday to settle at Rs 1,738.95. On a year-to-date (YTD) basis, the stock has risen 26.72 per cent. That said, the multibagger electric bus maker's scrip has rallied 167.70 per cent in a year.

For the near term, technical analysts largely suggested 'bearish' views on the counter. Immediate support could be seen at Rs 1,700 level. And, resistance may be found at Rs 1,826.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, "Olectra's stock has entered into time-wise correction phase post the stellar rally. The counter is expected to hover within the Rs 1,600-1,900 range for the time being. A decisive breakthrough is likely to dictate the next leg of the trend."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, The stock looked weak on daily charts and may test Rs 1,650 level in the near term. One should wait for fresh buy."

AR Ramachandran from Tips2trades said, "Olectra Greentech looked bearish on daily charts with strong resistance at Rs 1,826. A daily close below support of Rs 1,700 could lead it to a lower level of Rs 1,526 in the near term."

The counter traded lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 48.36. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 158.95. Earnings per share (EPS) stood at 2.71. As of December 2023, promoters held a 50.02 per cent stake in the company.

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