Ola Electric Mobility Share Price: Two foreign brokerage firms have started covering the shares of electric vehicle company Ola Electric Mobility with a 'Buy' rating. Due to this news, the company's shares rose by 5% in early trade today on 17 September. Both BofA Securities and Goldman Sachs have expressed hope of great returns from Ola Electric shares. BofA Securities has given a target price of Rs 145 to Ola Electric shares, which indicates a possibility of about a 35% rise in it from Monday's closing price.

At the same time, Goldman Sachs has also recommended buying this stock and has given a target price of Rs 160, which can give investors a potential gain of up to 50%.

Ola Electric's shares have been falling for some time now. The stock is now trading 30% below its record high of Rs 157. In such a situation, these new price targets may once again increase the activity in the stock.

What does BofA Securities say

According to BofA Securities, electric vehicles currently account for 6.5% of India's two-wheeler segment. The price of electric scooters has now become lower than petrol scooters, which could prove to be a turning point for the EV market. He said that Ola Electric has strengthened its hold in this segment and has handled key aspects like product portfolio, funding access, and brand distribution well. The brokerage expects the EV penetration rate to reach 18% by 2028 and 25% by 2030.

What is the opinion of Goldman Sachs?

Goldman Sachs also believes that Ola Electric can gain a sustainable lead in India's electric two-wheeler market in the long term. They have estimated that the company's revenue can grow at a rate of 40% CAGR between FY 2024 and 2030, allowing the company to break break-even on the free cash flow level even without subsidies by 2030.

Also, the company's EBITDA margin can reach 11.9% and RoIC 27%. However, there are many potential challenges for Ola Electric such as competition, the future of in-house cell manufacturing, and the direct-to-consumer network.

Around 10 am, Ola Electric Mobility shares were trading at Rs 112.55, up 4.60 percent on NSE.