Shares of Olectra Greentech continued their upward trend for the third straight trading session on Monday. The stock began the trade strongly at Rs. 503.50 apiece and climbed further to hit an intra-day high of Rs. 551.70, a 14.95% increase from the previous day's closing price of Rs. 479.95.
At 11:45 p.m., the stock was trading at around ₹533, up by 10.59%.
The shares of the company surged by almost 19% on February 24 after the company unveiled a hydrogen bus in a technical partnership with Reliance. This bus serves as a carbon-free alternative to conventional public transportation.
"The hydrogen bus is a fully carbon-free alternative to traditional public transportation. "In the wake of the depletion of natural resources and the negative impacts of air pollution and emissions, Olectra has taken the initiative to accelerate the development of hydrogen-powered buses."
"This initiative will help out the Indian government achieve its carbon-free hydrogen ambitions. "Olectra aims to contribute to the nation’s environmentally sustainable energy security through its hydrogen buses," said Olectra Greentech in an exchange filing.
The company claimed that a single hydrogen fill allows the bus to travel up to 400 km. Hydrogen for this range coverage takes just about 15 minutes.
When it comes to emissions, these buses generate only water as tailpipe emissions. This is the main unique selling proposition for phasing out old diesel and petrol systems and replacing them with these green buses, the company added.
Olectra Greentech - part of the MEIL Group, is a small-cap stock with a market cap of ₹4,489 crore. The company is India’s largest pure electric bus manufacturer, having manufacturing facilities in Hyderabad, India. Olectra is India’s first-ever electric bus manufacturer, having manufactured and deployed all variants of electric buses in India.
After leading in the commercial run of electric buses, the company is expanding its product line in the e-mobility segment for 3-wheeler electric autos and electric trucks, its website shows.
On the financial side, the company posted a consolidated net profit of ₹15 crore for the December quarter of FY23, a growth of 15.38% YoY and 114% QoQ. The revenue from operations during the quarter came in at ₹248 crore, up from ₹208 crore in Q3FY22.
The e-bus division segment, which accounts for more than 85% of company revenue, recorded a revenue growth of 19.45% to ₹221 core in Q3 FY23 from ₹185.9 crore in Q3 FY22.
For the first nine months of the current fiscal, the e-bus division posted revenue of ₹689 crore, a jump of 174% from ₹251 crore in the same period of the last fiscal.
The stock had reached its record high of ₹941 apiece in December 2021, after which it witnessed selling pressure and has since gone down by almost 43%. Despite this decline, the stock is still up by 827% from its May 2020 lows.
On Friday, the stock hit a 52-week low of ₹374 per share, but it promptly recovered and is currently trading at 43% higher than its one-year low. However, the stock is down 27% from its 52-week high of ₹738.
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