Ola Electric shares: Up 59% in a month, still nursing a 30% six-month decline — should you buy?

Shares of Ola Electric Mobility Ltd resumed their climb on Wednesday, climbing 0.89 per cent to settle at Rs 38.56. At this closing level, the stock has surged 58.55 per cent; however, it still remains down 30.14 per cent over the last six months.

Bourses BSE and NSE have put the securities of Ola Electric under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The pure-play electric two-wheeler (E2W) firm has recently launched a new product, S1 X+ 5.2 Kwh, with 4680 Bharat Cells. Prior to this, it announced the readiness of its in-house developed Lithium Iron Phosphate (LFP) cell, which is currently awaiting regulatory approvals.

"Developed as part of Ola's vertically integrated battery innovation efforts, the new 46100 format LFP cell is bigger than the current NMC 4680 Bharat Cell and represents a step change in scale, cost efficiency, and applicability across both mobility and energy storage solutions, and will begin entering Ola's products starting next quarter," Ola Electric stated.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "Ola Electric is showing some positivity after the recent company announcement regarding its battery manufacturing. Although, the market is still waiting for the upcoming results. This period is extremely crucial for Ola Electric. Investors with high risk appetite can consider buying it for the medium to short term. However, the next two quarters' results are extremely crucial for the sustainability of the stock price."

He added, "The company's progress also depends on how quickly EV adoption takes place. Faster EV adoption will further increase its revenue. Further, the firm needs to improve its service standards, as customer expectations around service quality remain a critical factor."

From a technical standpoint, Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted, "For Ola Electric, current levels warrant caution. A sustained move above Rs 42 is essential to confirm further bullish momentum, potentially driving the stock toward the Rs 50 zone. On the downside, Rs 35 is expected to act as a key support level, with Rs 32 providing a stronger cushion against any decline. Overall, the stock is at a critical juncture, and confirmation of strength is necessary before expecting continued upside."

According to AR Ramachandran, a Sebi-registered research analyst at Tips2trades, "The stock is bearish and also overbought on daily charts with next resistance at Rs 41.88. Investors should book profits at current levels as a daily close below the support of Rs 35.7 could trigger a drop towards Rs 29.23 in the near term."

Ravi Singh, Chief Research Officer at Mastertrust, stated that Ola Electric has the potential to reach an upside target of Rs 45 in the near term. He advised placing a stop loss of Rs 37 for this trade.