Goldman Sachs downgrades Ola Electric to Sell and cuts price target
Goldman Sachs moved Ola Electric to Sell and cut its target price to Rs.23, implying about 23% downside from the last close, Mint reports.
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what happened
According to Mint, Goldman Sachs lowered its rating on Ola Electric Mobility to Sell and sharply reduced its target price from Rs.39.28 to Rs.23. The bank sees a hard road to positive free cash flow given high interest costs and heavy capital spending. It also trimmed its revenue estimates for FY27 to FY29 by up to 10%.
Goldman Sachs estimates that revenue in FY28 to FY30 would need to reach 3.6 to 7.1 times FY26 levels to cover capex and interest. FY26 revenue was 55% below FY24. The bank also flagged operational risk after the head of the battery business left.
Earlier this year the company raised Rs.780 crore through a QIP in June, and in early October it finalised a Rs.1,000 crore rights issue at Rs.27 per share. In Q1 FY27 its net loss narrowed to Rs.336 crore, but revenue fell 45% year on year.
why it matters
For markets this signals heavy funding risk and weak demand for electric two-wheelers. The shares are already about 44% below their 52-week high, and dilution from the rights issue adds further pressure.
market impact
Ola Electric: the downgrade and funding risks weigh on the stock; Ather Energy as a sector rival
tags
instruments
sources
- Goldman Sachs Ola Electric Downgrade: Why stock rating changed to sell; 23% downside seen — New target price, rationale, 24 October 2026 at 12:17 UTC
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