Analyst Flags Uncertainty Around Ola, Urges Investors to Stay Cautious for Now

Speaking to CNBC TV18, Siddhartha Khemka, Head of Research for Wealth Management at Motilal Oswal Financial Services, said the primary reason for his cautious stance is the lack of visibility on Ola’s future growth strategy. While he does not actively track the stock, Khemka noted that the recent developments have created a high degree of uncertainty, making it difficult for investors to assess the company’s prospects with confidence.

Khemka acknowledged that Ola’s two-wheeler electric vehicle business holds promise and could potentially emerge as a strong growth engine. He pointed out that the company has built a recognizable brand and developed a viable product model in the EV space. However, he stressed that significant scaling will be essential for Ola to unlock meaningful value, especially in a segment that has become increasingly competitive.

The analyst highlighted that established automobile manufacturers such as TVS Motors and Bajaj Auto have already strengthened their positions in the electric two-wheeler market, capturing market share and setting a high benchmark for execution and scale. Against this backdrop, Ola’s lack of a clearly articulated strategy following the promoter’s stake sale has added to investor unease.

Market sentiment has also remained subdued more broadly. At the previous close, the Sensex declined 120.21 points, or 0.14 percent, to settle at 84,559.65, while the Nifty fell 41.55 points, or 0.16 percent, ending at 25,818.55. Within this environment, stocks facing company-specific uncertainty have seen sharper scrutiny from investors.

Given the current scenario, Khemka believes there are more attractive opportunities available elsewhere in the market. He identified TVS Motors as a preferred pick within the two-wheeler segment, citing its established leadership and strong presence in electric mobility as key strengths.

In conclusion, the analyst advised investors to wait for clearer guidance from Ola’s management before considering exposure to the stock. Until the company provides greater transparency on its growth plans and strategic priorities, Ola remains a relatively high-risk proposition compared to more established players in the electric vehicle space.