Olectra Greentech shares rise 4%; still down 18% year-to-date; what's next?

Shares of Olectra Greentech Ltd extended their gains for a second straight session on Tuesday, rising 3.70 per cent to settle at Rs 1,215.05. However, despite the recent recovery, the stock remains down 18.24 per cent so far in 2025.

Meanwhile, the Maharashtra government has reinstated its order for 5,150 electric buses from Olectra, albeit with a revised delivery schedule. Under the new timeline, the company is set to deliver 620 electric buses to the Maharashtra State Road Transport Corporation (MSRTC) in 2025, 2,100 units in 2026, and the remaining 2,210 units in 2027.

A few analysts noted that while the high-risk stock appears bullish on charts, support is seen in the Rs 1,177–1,140 range.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that Olectra has recently encountered execution challenges. "The upcoming quarterly results and progress on capacity expansion will be key factors for the company. Investors with a high-risk tolerance are advised to hold their positions," he added.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, stated that Olectra Greentech has recently been forming higher lows, indicating bullish momentum. "However, a strong and sustained breakout above the Rs 1,300–1,350 range is needed to trigger further upside. On the downside, the Rs 1,160–1,140 zone is expected to act as a key support in the near term," he also said.

According to Sebi-registered independent analyst AR Ramachandran, "Olectra Greentech stock price is bullish on daily charts with strong support at Rs 1,177. A daily close above resistance of Rs 1,228 could lead to an upside target of Rs 1,315 in the near term."

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 54.87. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 71.47 against a price-to-book (P/B) value of 10.13. Earnings per share (EPS) stood at 17 with a return on equity (RoE) of 14.17. According to Trendlyne data, Olectra has a one-year beta of 1.42, indicating high volatility.

Olectra is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL), which manufactures electric buses in India. It is also the country's largest manufacturer of silicone rubber/composite insulators for power transmission and distribution networks. As of March 2025, promoters held a 50.02 per cent stake in the EV firm.