Olectra Greentech shares zoom 14% post Q3 results; is more steam left?

Olectra Greentech Ltd shares surged 13.72 per cent in Thursday's trade to hit a high of Rs 1,507.05 after reporting strong third quarter (Q3 FY25) results. The stock was last seen trading 11.90 per cent up at Rs 1,482.90. At this price, it has fallen 13.53 per cent in the past six months.

The electric bus manufacturer's consolidated net profit climbed 71.65 per cent, year-on-year (YoY), to Rs 46.33 crore in Q3 FY25 from Rs 26.99 crore in the year-ago period. During the quarter under review, revenue from operations came at Rs 515.37 crore, up 50.63 per cent compared to Rs 342.14 crore in the corresponding period last year.

A market expert said investors with a long-term view could consider holding on to the stock. "Olectra Greentech has a strong order book. At present, the stock is fully priced in. Going ahead, order execution will be a crucial thing to monitor in the next one year. The counter, a multibagger in the last 3-4 years, was under consolidation. Investors with a long-term view can hold on to it," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Technically, a decisive close above Rs 1,518 is required for further upside potential. "The stock price is bullish on daily charts with strong support at Rs 1,352. A daily close above the resistance of Rs 1,518 could lead to a further upside target of Rs 1,668 in the near term," said Sebi-registered research analyst AR Ramachandran.

The scrip traded higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 100-day, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 55.67. 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 85.70 against a price-to-book (P/B) value of 11.04. Earnings per share (EPS) stood at 15.46 with a return on equity (RoE) of 12.89.

It recorded high trading volume on BSE as around 1.39 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 42,000 shares. Turnover on the counter came at Rs 20.31 crore, commanding a market capitalisation (m-cap) of Rs 12,152.46 crore.

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.