Ola Electric set for 50% upside? Here’s why Goldman Sachs is bullish

Ola Electric Mobility shares surged on Tuesday, climbing over 6% after two major foreign brokerages, Goldman Sachs and BofA Securities, initiated coverage with bullish ratings.
At 12:30 am, shares of the company were up 6.78% at Rs 114.95 on the Bombay Stock Exchange (BSE).
Goldman Sachs has projected a 50% upside for the stock, setting a target price of Rs 160. The stock had closed at Rs 107 on Monday, making the forecasted gain a significant potential boost for investors.
Goldman Sachs expects Ola Electric to achieve EBITDA breakeven by FY27, fuelled by strong revenue growth.
The brokerage is forecasting a compound annual revenue growth rate of over 40% between FY24 and FY30, with the company projected to reach an EBITDA margin of 11.9% and a return on invested capital (ROIC) of 27% by FY30.
Goldman Sachs attributed its optimism to Ola’s strategic positioning in India’s fast-growing electric two-wheeler market, which is expected to expand rapidly over the coming years.
In addition, BofA Securities also gave a ‘Buy’ rating with a target price of Rs 145, suggesting a 36% upside from the current price.
The firm highlighted Ola Electric’s leadership in technology and cost efficiency as key factors that could drive long-term success.
While acknowledging some concerns around the company’s battery manufacturing capabilities, BofA maintained that Ola remains a strong bet in the electric vehicle market.
Meanwhile, HSBC, which initiated coverage on Ola Electric last month, echoed a positive outlook with a target price of Rs 140.
However, HSBC raised some concerns about recent market share losses, potentially due to rising competition from lower-cost electric two-wheelers.
If this trend continues, the brokerage warned there could be a 15-20% downside risk to Ola’s volume estimates for FY25 and FY26, though it retained its overall bullish stance.
While these brokerage calls have sparked renewed interest in the stock, investors are weighing the long-term prospects of Ola Electric’s growth against the backdrop of increasing competition.
Still, with foreign brokerages backing the stock, Ola Electric appears well-positioned to capitalise on India’s growing demand for electric vehicles.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)