Ola Electric Slides Over 7% After Bearish Call From Goldman Sachs
Ola Electric, the Indian electric two-wheeler maker, saw its share price crash as much as 7.6% following a bearish downgrade from Goldman Sachs. The brokerage slashed the stock's price target from an implied higher level to Rs 23 and cited concerns over the company's path to cash flow positivity given high interest costs and capital expenditure needs in cell and E2W manufacturing. Goldman Sachs also cut top-line growth projections by up to 10% for FY27-29. The downgrade came as Ola Electric launched a Rs 1,000 crore rights issue, with founder Bhavish Aggarwal pledging 4.32% of his stake to fund participation.
Key points
- Goldman Sachs downgraded Ola Electric to Sell, target Rs 23
- Stock fell 7.6% on profitability and growth concerns
- Company launched Rs 1,000 Cr rights issue for debt reduction and expansion
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