Ahead of Olectra Greentech’s results on August 9, SEBI-registered analyst Rohit Mehta breaks down the stock performance from a technical perspective.
According to Mehta, shares of the electric bus manufacturer have been in a sustained downtrend since peaking at its all-time high of ₹2,221 in February 2024, with the stock now down about 35%.
On the weekly chart, key support lies in the ₹948 - ₹1,013 zone, which recently triggered a bounce. However, the uptrend has faced resistance near the ₹1,426 zone, with the next major hurdle at ₹1,785, the analyst said.
A decisive break above ₹1,785 could mark a trend reversal and open the path towards retesting the all-time high, but on the downside, a fall below ₹948 could reignite bearish momentum, Mehta added.
On the fundamentals front, Olectra boasts an impressive 5-year profit CAGR of 123% and a 10-year median sales growth of 17.9%. However, valuations remain steep at 11.3x book value, while ROE has averaged a modest 10.6% over the past three years, he said. Borrowing costs remain relatively high.
For the March-June quarter, promoters have maintained their stake at 50.02%, while FIIs increased their holdings from 5.38% to 5.66% and DIIs from 0.45% to 0.48%.
Financially, the company is in good shape. In the March quarter, sales came in 55.4% higher and EPS grew 53.3%. However, sequentially, revenue fell 12.8% and EPS dropped 54.6%, reflecting near-term pressure, Mehta said.
Olectra Greentech shares were down 1.6% at ₹1,421 ahead of market close, having lost 2.3% year-to-date.
Retail sentiment on Stocktwits remained ‘bearish’. It was ‘neutral’ a week earlier.
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