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Check Before You Invest : OLA Electric Mobility Ltd

BSE: 544225 NSE: OLAELEC ISIN: INE0LXG01040
  |   Sector:  Automobiles   |   Industry:  Automobile Two & Three Wheelers

Snapshot

Q.1 Which industry/sub-sector does OLA Electric Mobility Ltd belong to?
OLA Electric Mobility Ltd belongs to the Automobiles sector, operating specifically within the Automobile Two & Three Wheelers segment.
Q.2 Is OLA Electric Mobility Ltd a good quality company?
OLA Electric Mobility Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is OLA Electric Mobility Ltd undervalued or overvalued?
OLA Electric Mobility Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 1.43 1.64
Price to Sales 6293.85 403.29
EV to EBITDA -726.58 -
Q.4 Is OLA Electric Mobility Ltd a good buy now?
OLA Electric Mobility Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd revenue growth is -96.3% for FY-2025, which is below its 5-year CAGR of 10.88%, indicating slower growth.

Q.2 Gross Profit margin of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Gross profit margin which is the profit after deduction of direct costs, is -1233.3% for FY-2025, which is below its 5-year median of -25.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2900% for FY-2025, which is below its 5-year median of -1066.09% indicating decreasing margins.

Q.4 Net Profit Margin of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Net Profit Margin is -1333.33% for FY-2025, is below its 5-year median of -792.36%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -1233.3 -25.6
Operating Profit Margin (%) -2900 -1066.09
Net Profit Margin (%) -1333.33 -792.36

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Return on Asset is -0.45%, which is above its 5-year historical median of -0.84%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Return on capital employed is 0.59% for FY-2025, which is above its 5-year historical median of -0.88%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Return on equity is -0.6% for FY-2025, which is above its 5-year historical median of -1.57%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Cash conversion cycle is 5597 days, above its 5-year historical median of -8 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) - -
ROE (%) -0.6 -1.57
ROCE (%) 0.59 -0.88
Cash Conversion Cycle 5597 days -8 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Debt-to-Equity ratio is 0.05, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of OLA Electric Mobility Ltd?
OLA Electric Mobility Ltd Debt to cash flow from operations is -4.84, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of OLA Electric Mobility Ltd?

Q.1 Promoter shareholding and pledge status of OLA Electric Mobility Ltd?
Promoters hold 34.59% of the OLA Electric Mobility Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does OLA Electric Mobility Ltd performance compare with that of its Peers?

Q.1 Revenue growth of OLA Electric Mobility Ltd vs industry peers?
OLA Electric Mobility Ltd revenue CAGR is 10.88%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -96.3 -
Gross Profit Growth (%) 0 -1.6
Operating Profit Growth (%) 0 -4.3
Net Profit Growth (%) 0 -10.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) - 1.02
ROE (%) -0.6 1.23
ROCE (%) 0.59 2.44
Cash Conversion Cycle (days) 5596.67 25

Valuation & price assessment

Q.1 Stock return of OLA Electric Mobility Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -29.61% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -29.6%
Q.2 Valuation ratios of OLA Electric Mobility Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 22.38
Price to Book 1.43 1.64 4.64
Price to Sales 6293.85 403.29 3.29
EV to EBITDA -726.58 - 16.41

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