OLAELEC.NS Stock Today: December 23 – Pledge Removal Spurs Rebound
The Ola Electric share price firmed on 23 December as news of promoter pledge removal followed Bhavish Aggarwal’s stake sale, easing a key overhang. OLAELEC.NS last traded at ₹34.75, up 1.08%, with volume more than double its 1-month average. The stock remains about 65% below its 52-week high of ₹99.95 and roughly 13% above its recent low of ₹30.76. Investors now weigh if governance cleanup plus better execution can steady losses and improve cash flows before a durable trend reversal.
What changed today
The company disclosed removal of all promoter pledges after Bhavish Aggarwal’s stake sale, which improved sentiment and helped the Ola Electric share price bounce off recent lows. Governance clarity often reduces financing risk and volatility. Background concerns around funding, delivery cadence, and unit economics remain, but the cleanup gives the board room to focus on execution. For wider context on recent issues, see Finshots.
Price: ₹34.75 (+1.08%), day range ₹34.17–₹36.10, open ₹34.64. Volume was 7.11 crore shares versus 3.18 crore average, signaling strong participation. Year to date, the Ola Electric share price is down 50.23%. Market cap stands near ₹14,534 crore. The stock is about 13% above the 52-week low of ₹30.76 but still well below the ₹99.95 high, keeping sentiment cautious.
Technical picture and key levels
Trend remains weak. RSI is 37.61, below neutral. MACD is -2.87 with a small positive histogram, hinting at waning downside momentum. ADX at 50.14 signals a strong trend, still down. Price trades below the 50-DMA ₹44.04 and 200-DMA ₹48.13, so any rally is counter-trend unless the Ola Electric share price reclaims these averages on rising volume.
Volatility is high with ATR at 2.24. Bollinger Bands show lower band near ₹30.85 and middle band at ₹36.69. Keltner middle sits at ₹36.82, upper at ₹41.30. Immediate resistance lies at ₹36.70–₹37.00, then ₹41.00–₹42.50. Support sits at ₹33.00–₹34.00 and ₹30.80. A close above ₹37 could open a move toward ₹41; below ₹33 risks a retest of ₹31.
Fundamentals and liquidity
Ola Electric Mobility share price reflects early-stage losses. TTM EPS is -₹5.46; gross margin is 15.06%; operating margin is -70.57%. PE is not meaningful at -6.35. Valuation sits at P/S 4.58 and P/B 3.33, rich for a loss-maker. Our stock grade reads C+ with a HOLD stance, suggesting patience until unit economics and cash generation improve.
Liquidity is reasonable: current ratio 1.73 and cash per share ₹7.00. Debt-to-equity is 0.72; interest coverage is -5.36, reflecting losses. Working capital is about ₹2,266 crore. The negative cash conversion cycle (-66.7 days) helps working capital, but sustained losses require continued funding or margin gains. The promoter pledge removal reduces perceived risk and may lower financing costs.
What could drive the next leg
For a durable turn in the Ola Electric share price, watch delivery ramps, warranty costs, and contribution margins, alongside policy support for EVs. Governance cleanup is a positive first step after the promoter pledge removal and Bhavish Aggarwal stake sale. For market context on the drawdown and investor debate, see this Economic Times analysis.
Short-term traders may look for sustained closes above ₹37, then ₹41, with stops near ₹33, given ATR of 2.24. Position traders could wait for a move above the 50-DMA ₹44.04 to confirm trend change. Investors building exposure can stagger entries on dips toward ₹32–₹33, sized modestly until losses narrow and free cash flow visibility improves.
Final Thoughts
The Ola Electric share price bounced as the promoter pledge removal cleaned up a key overhang and drew heavy volume. Yet the trend is still down, with price below the 50- and 200-day averages and momentum indicators soft. Fundamentals show improving scale but deep losses and negative coverage, so execution and cost control are critical. Near term, watch ₹36.70–₹37.00 for confirmation and ₹33.00 as support. Longer term, the path to better margins and cash flow will guide valuation. Consider phased entries, disciplined stops, and frequent review of disclosures. This article is for information only, not investment advice.
FAQs
News that promoter pledges were removed after Bhavish Aggarwal’s stake sale eased a key overhang. That improved sentiment and sparked buying interest, with volume more than doubling the average. The move likely reflects relief on governance and financing risk, even as the broader trend and fundamentals remain weak.
Too early to call. The stock is still below its 50- and 200-day averages, and RSI sits under 40. A series of higher highs and higher lows, plus closes above ₹37 and then ₹41–₹42.5, would strengthen the case. Sustained margin improvement would help confirm a bottom.
Immediate resistance is at ₹36.70–₹37.00, then ₹41.00–₹42.50. Support sits at ₹33.00–₹34.00 and the Bollinger lower band near ₹30.85. ATR is 2.24, so using stops 1–1.5 ATR from entries can help manage risk in this volatile phase.
Pledge removal reduces perceived risk but does not change earnings. Ola Electric remains loss-making with TTM EPS of -₹5.46 and operating margin of -70.57%. Liquidity is fair, with a 1.73 current ratio and ₹7.00 cash per share. Valuation at P/S 4.58 suggests execution must improve.
The next earnings announcement is listed as 6 February 2026 in the data feed, which may change. Investors should track company filings and exchange notifications for any revisions and watch for updates on deliveries, margins, and cash burn, as these will drive sentiment and valuation.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
