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Ola Electric and Ather Energy shares rally on distinct catalysts
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.
Ola Electric shares rose as much as 7.5% to ₹40.51 on the NSE after three sessions of declines.
Ather Energy shares gained more than 4% to ₹1,648.60 after Nomura raised its target price.
Ola Electric’s rally was attributed to value buying and strong trading activity of 6.87 crore shares.
Ola Electric recently launched its first dealer-led stores across seven Indian states.
Nomura retained its Buy rating on Ather Energy and lifted its target to ₹1,926 from ₹1,714.
- Who
- Ola Electric, Ather Energy, investors and Nomura.
- What
- Shares of both electric two-wheeler companies rose, for different stated reasons.
- Where
- In Indian stock-market trading, including the NSE and BSE.
- When
- Thursday, 10 September.
- Why
- Ola Electric benefited from value buying after a three-session decline and news of dealer-led stores; Ather Energy gained after Nomura raised its target price and maintained a Buy rating.
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”
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