Shares of Olectra Greentech Ltd soared to an all-time high of Rs 2,222, reflecting a 7.73% surge, following the consortium’s substantial contract win from Brihan Mumbai Electric Supply & Transport Undertaking (BEST/Authority). The Rs 4,000 crore order involves the supply, operation, and maintenance of 2,400 electric buses on a gross cost contract basis.
Background on Olectra Greentech:
Olectra Greentech, a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL), is a significant player in the electric bus manufacturing sector in India. As of December 2023, promoters held a 50.02% stake in the company, which is also a leading manufacturer of silicone rubber/composite insulators for power transmission and distribution networks.
The stock of Olectra Greentech closed 2% higher at Rs 2,103.85, with a market capitalization of Rs 17,268.56 crore. Despite giving up some gains in late trading, the scrip has witnessed a remarkable rally of 446.54% over the past year.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, pointed out key support and resistance levels, indicating a trading range between Rs 1900 and Rs 2400 for a month. AR Ramachandran from Tips2trades cautioned investors about overbought conditions on daily charts, advising profit booking.
Conclusion and Impact:
The substantial order win from BEST/Authority has propelled Olectra Greentech’s shares to an unprecedented high, underscoring the market’s confidence in the company’s capabilities. The Rs 4,000 crore contract is expected to significantly contribute to the company’s growth and further establish its position in the electric mobility sector. The bullish sentiment is tempered with technical caution, urging investors to monitor support and resistance levels for potential market movements. Olectra Greentech’s performance remains a focal point in the evolving landscape of sustainable and electric transportation in India.
