Olectra Greentech shares zoom 150% in 2023; what's next: Rs 1,400 or Rs 1,200?

Shares of Olectra Greentech Ltd rose sharply on Monday, resuming their upward move after a single-day halt. The stock jumped 8.26 per cent to settle at Rs 1,294.65. At this price, the multibagger scrip has gained 149.91 per cent on a year-to-date (YTD) basis. The electric bus maker recently stated that its order book continues to be strong.

"We have delivered over 1,400-plus electric buses and 35 electric tippers till September 30, 2023. The momentum has started in quarter 2 and is getting accelerated further in Q3 and Q4 to meet the current financial year 24 target. The strong demand continues with the company's net order book position of electric buses stands at 8,209 numbers after delivering 214 buses in H1," the company's management said during the Q4 FY24 earnings call.

Brokerage Geojit has recommended an 'Accumulate' call on the counter with a target price of Rs 1,351. "Olectra is diligently working towards its new Greenfield EV manufacturing facility, which is expected to operational by Q4, with an annual capacity outlay of 5,000 vehicles," it noted.

On technical setup, analysts largely suggested that the stock looked 'bullish'. Resistance on the counter could be seen around Rs 1,400 level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Olectra Greentech has seen a decisive spurt in price-volume and ran away from the slumber phase. The stock is primarily in an uptrend, hovering well above all its EMAs on daily timeframe, which adds up to a bullish quotient. And with the recent setup, the chart structure construes positive development for the near future. On the levels front, Rs 1,400 is very much in the vicinity, and a decisive breakthrough could soar it into uncharted territory. On the downside, Rs 1,250-1,245 is likely to cushion near-term blips, with sacrosanct support placed around the Rs 1,170-1,160 zone."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "At its current juncture, the stock is placed near the Rs 1,300 mark. Bias will be bullish for the coming few days as it is trading above all major exponential averages. Support is expected near Rs 1,200, and resistance is seen near Rs 1,400 levels.

AR Ramachandran from Tips2trades said, "Olectra Greentech is bullish but also overbought on daily charts with next resistance at Rs 1,380. A daily close below support  of Rs 1,247 could lead to Rs 1,018 in the near term."

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.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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