Ola Electric nearly doubles investors’ money in six sessions;

Mumbai: Despite reporting a big surge in quarterly losses last week, Ola Electric has nearly doubled investors’ money in just 10 days or six trading sessions.

Defying all the precautionary notes issued by analysts about investing in the company for short-term gains, the stock jumped another 10% (upper circuit limit) on Monday to settle at Rs 146.03 per share on the BSE.

Ola Electric debuted on the stock exchanges at its initial public offering (IPO) price of Rs 76 on August 9.

“While the long-term potential of Ola Electric, especially given the EV market’s favorable outlook, might be appealing, the current valuation appears to be quite speculative. Investors should be cautious, especially given the company’s ongoing losses and the high volatility in its stock price. For new investors, it may be wise to wait for a more stable entry point or consider the stock as a long-term play with a high risk-reward ratio,” said Saji John, Senior Research analyst, Geojit Financial Services.

The company is now valued at nearly 65,000 crore.

As its Rs 6,145 crore IPO was subscribed only about 4.5 times, trade pundits had raised concerns that the loss-making entity may struggle on the exchanges. They have also questioned Ola Electric’s ability to maintain its leading market share due to growing competition.