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Ola Electric and Ather Energy shares rally on distinct catalysts

Ola Electric and Ather Energy shares rally on distinct catalysts
Why Ola Electric and Ather Energy shares are rising today? Explained · livemint.com

Ola Electric and Ather Energy are companies that make electric two-wheelers.

Their shares went up during Thursday’s trading session.

Ola Electric’s share price rose after falling for three earlier sessions.

Some investors bought the stock because they thought it had become cheaper.

The company also recently opened dealer-run stores in several states.

Ather Energy’s shares rose after Nomura increased its price target for the company.

Nomura expects more people to choose electric two-wheelers.

It said better products, customer acceptance, lower ownership costs and government support could help the industry grow.

Key facts

Ola Electric intraday high
₹40.51 per share, up as much as 7.5%
Ather Energy trading price
₹1,648.60, up more than 4%
Ola Electric trading volume
6.87 crore shares, worth ₹270 crore
Ola Electric retail expansion
Dealer-led stores began operating across Rajasthan, Tamil Nadu, Maharashtra, Bihar, Telangana, Uttar Pradesh and Madhya Pradesh
Nomura rating
Buy rating retained on Ather Energy
Nomura target price
Raised to ₹1,926 from ₹1,714 per share
Nomura valuation
Ather Energy valued at 5.5 times FY29F EV/sales

Quotes

Nomura

Global brokerage covering Ather Energy and the two-wheeler sector

“Along with strong growth, Ather's premium positioning keeps long-term margin potential in the range of 15-20%, in our view. Hence, we believe Ather's premium valuation at 5-7x EV/sales should sustain”
livemint.com

Sources

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