Goldman Sachs downgrades India's Ola Electric to 'sell,' shares fall
BUZZ-Goldman Sachs downgrades India's Ola Electric to 'sell,' shares fall ** Shares of electric two-wheeler maker Ola Electric OLAE.NS fall as much as 7.5% to a six-month low of 29.53 rupees
** Brokerage Goldman Sachs downgrades stock to "sell" from "neutral," cuts target price to 23 rupees from 39.28 rupees, as it sees a better return potential from other companies that are part of its two-wheeler coverage
** Goldman sees a "challenging path to free cash flow given relatively high interest cost and capex needs of the cell and E2W business, during a more extended period of estimated operational losses at current market share levels"
** Brokerage also expects possible operating challenges in the battery cell business after the recent departure of co's battery business head
** Goldman says it could turn more positive if a move to dealer-led sales and servicing revives Ola's electric two-wheeler business and improves what it calls weak brand sentiment
** YTD, stock down 16.9%
(Reporting by Puyaan Singh in Bengaluru)
Recent news on Ola Electric Mobility
See all newsGoldman Sachs downgrades India's Ola Electric to 'sell,' shares fall
India's Ola Electric Mobility falls as rights issue prices at discount
Brief: Ola Electric Sets Rights Issue Price At 27 Rupees Per Equity Share
Brief: Ola Electric Approves Issue Of Shares Worth Up To 10 Billion Rupees
Brief: Ola Electric To Consider Fund Raising Via Rights Issue Of Equity Shares