Olectra Greentech – The Silent EV Multibagger in Making

OLECTRA

📊 Technical Analysis (Weekly Chart)

Trend: The stock had a steep fall from ~₹1,800 (2024 highs) to ~₹1,000 (2025 lows). It has since formed a rounded bottom and is showing signs of reversal.

Current Price: ₹1,528.80

Resistance Levels:

₹1,600 (immediate resistance)

₹1,800 (major breakout level)

Support Levels:

₹1,400 (nearby support)

₹1,200 (major support, recent bottom area)

Indicators:

Momentum improving with strong green candles and higher lows.

Weekly structure suggests accumulation and potential trend reversal.

View: If stock sustains above ₹1,600, it can retest ₹1,800–₹2,000 in medium term.

🏭 Fundamental Analysis

Business Model: Olectra Greentech is India’s largest electric bus manufacturer, part of MEIL (Megha Engineering). It also works on tippers, EV trucks, and composite insulators.

Growth Drivers:

Government’s push for EV adoption in public transport (FAME-II scheme).

High demand for electric buses from state transport corporations.

Strong backing from parent MEIL ensures execution capacity.

Financials (Latest FY24/25) (approximate):

Revenue: ~₹1,300–1,400 Cr (growing rapidly with order wins).

Profit: Still moderate due to high R&D and capex.

Order Book: Over ₹12,000+ Cr, ensuring visibility for next 3–4 years.

Strengths:

Market leader in EV bus space.

Rising government contracts.

First-mover advantage.

Risks:

Execution delays (delivery timelines).

Intense competition from Tata Motors, Ashok Leyland.

Margin pressure due to high input and battery costs.

🎯 Conclusion

Technical View: Bullish reversal forming. Sustaining above ₹1,600 can lead to ₹1,800–₹2,000. Strong support at ₹1,200.

Fundamental View: Strong long-term growth story in India’s EV transition, backed by large order book and government support. Near-term volatility possible, but structurally a good EV play.

👉 Investor Stance:


Investors: Accumulate gradually for 3–5 years; could be a multibagger if execution sustains.



⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.


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Trade Secrets By Pratik
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