Citi, HSBC, Emkay flag up to 32% downside on Ola Electric; prefer Ather, TVS for E2W exposure
Three brokerages retained Sell/Reduce on Ola Electric after Q4 revenue collapsed 57% YoY on a 61% volume drop. Citi cut target to Rs 26, HSBC to Rs 33, Emkay to Rs 25 versus a Rs 36.50 share price. Gross margin improved 424 bps QoQ to 38.5%, but Ebitda margin loss widened to 106%. Analysts pivot to Ather and TVS Motor as preferred E2W plays.
What happened
Citi, HSBC and Emkay retained Sell/Reduce on Ola Electric after Q4 revenue fell 57% YoY on 61% volume drop. Targets imply up to 32% downside; brokerages prefer
Key facts
- Citi target Rs 26 (from Rs 22)
- HSBC target Rs 33 (from Rs 45)
- Emkay target Rs 25 (from Rs 20)
- share price Rs 36.50
- revenue -57% YoY
- volume -61% YoY
- GM 38.5% (+424 bps QoQ)
- Ebitda margin loss 106%
- up to 32% downside
Why this matters
Ola Electric's collapsing revenue and widening losses create a potential value-dislocation window for strategic partnerships or consolidation, even as Ather and TVS emerge as the cleaner platforms for E2W M&A or alliance plays.