Ola Electric shares rebound 5% after 11% fall in 4 sessions. What’s driving the surge and should you buy?
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Shares of Ola Electric Mobility Ltd rallied as much as 5% to Rs 29.35 on the BSE on Wednesday, rebounding after a sharp 11% decline over the previous four sessions. The recovery followed relief from the Bombay High Court, which stayed the arrest warrant against CEO Bhavish Aggarwal. “The Hon’ble High Court of Bombay at Goa has stayed the warrant issued by the District Consumer Commission, South Goa. Additionally, the Hon’ble Court observed that the Commission exceeded its jurisdiction under the Consumer Protection Act in issuing the warrant,” the pure-play EV company said in a regulatory filing on February 17. Ola Electric shares have been under pressure recently due to fundamental reasons. In the previous session, international brokerage Citi downgraded Ola Electric to “Sell” from “Buy” and cut its target price by 51% to Rs 27 from Rs 55, citing persistent headwinds to volume growth. The brokerage noted that EV penetration in India’s two...