Ola Electric and Ather Energy shares saw a significant rally in Thursday’s trading session amid stock market rally. Ola Electric share price gained as much as 7.5%, touching an intraday high of ₹40.51 per share on NSE. Meanwhile, Ather Energy share price rallied nearly over 4% to ₹1,648.60 on 10 September.
Meanwhile, Indian benchmark indices opened higher on Thursday. The BSE Sensex was trading at 74,832.29, gaining 68.06 points, or 0.09%. Meanwhile, the broader NSE Nifty 50 stood at 23,446.60, up 15.10 points, or 0.06%.
What’s behind the rally?
Ola Electric share price gained momentum as investors stepped in for value buying following a three-session decline in the stock.
As many as 6.87 crore shares were traded during the session, with the total traded value standing at ₹270 crore, according to NSE data. The stock had dropped more than 2% over the previous three trading sessions.
The buying interest comes days after Ola Electric announced the launch of its first batch of dealer-led stores, just a month after opening its sales and service network to partners. The company said its initial network-partner stores had commenced operations across Rajasthan, Tamil Nadu, Maharashtra, Bihar, Telangana, Uttar Pradesh and Madhya Pradesh.
The dealer-operated outlets are likely to expand Ola Electric’s footprint in key regional markets while catering to local demand for its scooters and motorcycles.
Meanwhile, Ather Energy share price after global brokerage Nomura raised its target price for the electric two-wheeler manufacturer while maintaining its bullish stance on the stock.
Nomura retained its ‘Buy’ rating on Ather Energy and increased the target price to ₹1,926 per share from ₹1,714 earlier. The brokerage has valued the company at 5.5x FY29F EV/sales.
Ather Energy continues to be Nomura’s top pick in the two-wheeler segment, with the brokerage expecting faster EV adoption to further improve the company’s growth prospects.
According to Nomura, electric two-wheeler penetration is rising faster than previously anticipated, driven by better product offerings, increasing consumer acceptance, favourable total cost of ownership (TCO), and supportive government policies.
“Along with strong growth, Ather’s premium positioning keeps long-term margin potential in the range of 15-20%, in our view. Hence, we believe Ather’s premium valuation at 5-7x EV/sales should sustain,” Nomura said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
