Ola Electric and Ather Energy shares rise on dealer expansion and broker upgrade

The BSE Sensex opened at 74,832.29, up 68.06 points or 0.09%, and the NSE Nifty 50 stood at 23,446.60, rising 15.10 points or 0.06%.

Ola Electric's rally followed a three-session decline, with investors stepping in for value buying. Trading activity showed 6.87 crore shares changing hands, valued at ₹270 crore, after the stock had fallen more than 2% over the prior three days.

The upward movement in Ola Electric came shortly after the company launched its first batch of dealer-led stores, expanding its sales and service network across Rajasthan, Tamil Nadu, Maharashtra, Bihar, Telangana, Uttar Pradesh and Madhya Pradesh. These partner-operated outlets aim to strengthen regional presence and meet local demand for electric scooters and motorcycles.

Ather Energy's share price increase was driven by an upgrade from global brokerage Nomura, which raised its target price to ₹1,926 from ₹1,714 while maintaining a 'Buy' rating. Nomura cited faster-than-expected electric two-wheeler adoption, supported by improved products, consumer acceptance, favourable total cost of ownership and government policies.

The brokerage reaffirmed Ather Energy as its top pick in the two-wheeler segment, noting the company's premium positioning supports long-term margins of 15-20%. Nomura believes the stock's valuation at 5-7x EV/sales is sustainable given its growth outlook.

No investment advice is implied in this report. Readers are encouraged to consult certified professionals before making financial decisions.