Ola Electric Mobility share price dropped more than 7% following its Q3 results on Monday, February 16. The company reported disappointing earnings for the third quarter, prompting brokerage firm Emkay Global to downgrade its rating and reduce its target price by 60%.
The analyst has revised the stock’s rating to ‘sell’ from its earlier ‘buy’ recommendation and lowered the price target to ₹20 per share from ₹50. Ola Electric Mobility reported revenue of ₹504 crore for the December quarter, which is a decline of 57% year-over-year from ₹1,172 crore and a 33% decrease from ₹756 crore in the September quarter.
The firm announced a loss of ₹487 crore, which is less than the ₹564 crore loss from the previous year but more than the ₹418 crore loss reported in the September quarter.
Founder and CEO Bhavish Aggarwal informed analysts that the significant investment phase for Ola Electric has concluded, and the company will now concentrate on increasing its installed capacity while tackling service execution issues.
