Shares of Olectra Greentech, India’s first E-bus manufacturer, continued their rally and jumped 14.3 percent on Monday, July 10, to record a new 52-week high after the company secured a Letter of Intent (LoI) from the Maharashtra government for the supply, operation, and maintenance of 5,150 electric buses.
Following the receipt of this significant order on Friday, the company witnessed a substantial surge of nearly 20 percent in its share price.
With an approximate value of ₹10,000 crores, this order surpasses Olectra Greentech's market capitalisation which stood around ₹9,304 crores at the time of order. However, the market cap scaled to almost ₹11,385 crores on Monday.
During Monday’s trade, the stock opened at a price of Rs. 1,263 per share against the previous close of Rs. 1,231.95 per share and grew further during the early trading session to touch a new 52-week high of Rs. 1,408.70 apiece.
It was trading at ₹1,376.45, up by 11.73 percent, at 11:30 a.m. on the NSE.
The stock touched its 52-week low of Rs. 374.10 on February 23, 2023, indicating that at the current price, the stock is trading over 268 percent above that level.
The stock has increased nearly 40 percent in the last five days. Furthermore, in the past six months, it has shown a growth of over 178 percent. Along similar lines, the stock has delivered a massive 760 percent return in the last five years to its shareholders.
Olectra's shares have experienced a remarkable surge of 167% so far in 2023, surpassing the modest 7% increase observed in the Sensex.
The contract is structured as a 'Gross Cost Contract' on an OPEX model basis. The company announced through an official filing that the contract duration spans 12 years.
In FY23, the company witnessed a substantial 83% YoY growth in total revenue, reaching ₹1,100 crore, accompanied by an impressive 88% YoY increase in net profit to ₹66 crore.
Olectra Greentech Ltd is a pioneer in electric bus manufacturing and insulators in India. With this endeavour, OGL has been a part of building the power transmission and distribution in India, its website shows.