Why is Ola Electric Mobility Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -38.66% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -5.96
2
The company has declared Negative results for the last 5 consecutive quarters
- NET SALES(9M) At Rs 2,129.00 cr has Grown at -52.22%
- PAT(9M) At Rs -1,716.00 cr has Grown at -52.22%
- INTEREST(9M) At Rs 325.00 cr has Grown at 33.20%
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -63.76%, its profits have fallen by -43%
4
Below par performance in long term as well as near term
- Along with generating -63.76% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Ola Electric for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Ola Electric
-63.83%
-1.12
57.01%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
31.00%
EBIT Growth (5y)
-38.66%
EBIT to Interest (avg)
-5.96
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
0.67
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
8.25%
Institutional Holding
10.03%
ROCE (avg)
-47.32%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
35
Price to Book Value
3.67
EV to EBIT
-7.20
EV to EBITDA
-10.11
EV to Capital Employed
3.55
EV to Sales
5.08
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-49.37%
ROE (Latest)
-52.51%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
4What is working for the Company
PBDIT(Q)
Highest at Rs -203.00 cr.
PBT LESS OI(Q)
Highest at Rs -484.00 cr.
PAT(Q)
Highest at Rs -418.00 cr.
EPS(Q)
Highest at Rs -0.95
-17What is not working for the Company
NET SALES(9M)
At Rs 2,129.00 cr has Grown at -52.22%
PAT(9M)
At Rs -1,716.00 cr has Grown at -52.22%
INTEREST(9M)
At Rs 325.00 cr has Grown at 33.20%
Loading Valuation Snapshot...
Here's what is working for Ola Electric
Operating Profit (PBDIT) - Quarterly
Highest at Rs -203.00 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs -484.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs -418.00 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs -0.95
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Ola Electric
Net Sales - Quarterly
At Rs 690.00 cr has Fallen at -25.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 924.50 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Interest - Nine Monthly
At Rs 325.00 cr has Grown at 33.20%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)






