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The recent decline in OLA Electric shares, plummeting nearly 9% to an intraday low of Rs 90.26, reflects the growing concerns surrounding the company's performance and image. This downturn comes amidst a backdrop of negative reviews regarding the quality of its products, which has sparked public scrutiny and criticism. The social media clash between OLA's founder, Bhavish Aggarwal, and comedian Kunal Kamra further fueled public attention, highlighting the company's struggles with customer relations.
The heated exchange on X.com (formerly Twitter) stemmed from customer complaints regarding OLA Electric's products and lack of adequate customer service. Kamra, known for his outspoken nature, criticized OLA's refusal to offer full refunds to customers who purchased defective products. Aggarwal, in turn, accused Kamra of lacking research and extended an open invitation to work at the company's service center, implying that Kamra could learn practical skills. This online altercation, while initially directed at Kamra, serves as a broader reflection of the growing discontent among OLA Electric customers.
The company's IPO, initially met with robust interest from investors, is now viewed with skepticism. While the stock enjoyed an initial uptrend, hitting the upper circuit of 20% for three consecutive trading days, its current performance paints a stark contrast. The stock has plummeted 74% from its peak, trading at a significant discount compared to its IPO price band. OLA Electric raised a substantial Rs 6,154 crore through the IPO, a testament to the initial investor confidence that has since waned. The company's Q1 FY25 financial results, revealing a widened net loss of Rs 347 crore, further compounded concerns about its financial stability. While revenue growth remains positive, the persistent losses raise questions about OLA Electric's long-term viability.
The recent share price decline aligns with the broader trend of market sentiment toward OLA Electric. The stock has lost 10% in the past five trading sessions and a staggering 21% in the past month. This decline stands in stark contrast to the Nifty 50, which has experienced a more moderate drop of 5% over the past five sessions and 0.4% in the past month. This performance disparity underscores the market's growing unease regarding OLA Electric's ability to overcome its challenges and restore investor confidence. The company's future hinges on its ability to address customer concerns, improve product quality, and demonstrate a path towards profitability. Whether OLA Electric can successfully navigate these challenges remains to be seen.