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Ola Electric Shares Drop Over 4% as HSBC Retains 'Reduce' Rating, Citing 37% Downside
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CNBC TV18•29-09-2026, 14:30
Ola Electric Shares Drop Over 4% as HSBC Retains 'Reduce' Rating, Citing 37% Downside
- •Ola Electric Mobility shares fell over 4% after HSBC maintained a 'reduce' rating due to execution and brand-rebuilding risks.
- •HSBC's target price of ₹24 per share implies a 37% downside from Monday's closing price of ₹37.86.
- •Despite progress in battery manufacturing and localization at the Giga Factory, brand rebuilding and execution remain key concerns for HSBC.
- •Ola Electric's board will meet on October 5 to consider a rights issue to raise up to ₹1,000 crore.
- •Six out of eight analysts have a 'sell' rating on Ola Electric, with a 12-month consensus target price of ₹29.14.
Key Questions Answered
HSBC maintained a reduce rating on Ola Electric Mobility with a target price of ₹24 per share, which implies about a 37% downside from its previous close.
Ola Electric has scheduled a board meeting for October 5 to consider raising up to ₹1,000 crore through a rights issue of partly paid-up equity shares, pending regulatory approvals.
HSBC reports that Ola Electric's Giga Factory is accelerating battery manufacturing and localisation, expecting battery yields to climb from about 70% to roughly 90% over the next six to nine months.
