Why is Olectra Greentech share up 50% in the last 1-month?

Olectra Greentech share price rallying

Shares of electronic bus manufacturing company Olectra Greentech have shot up by almost 50% over the past one month. Although a shift towards electric mobility is happening at a rapid pace, the movement is somewhat gradual for large vehicles like buses and trucks.

So, what has suddenly happened with Olectra Greentech over the past month that has triggered this sharp rally in its share price? Read on to find out the reasons!

Olectra Greetech share price: Reasons for the rise

Partnership with Reliance: The company recently announced the launch of a hydrogen bus in a technical partnership with giant Reliance Industries. The bus can travel a distance of up to 400 km on a single fill of hydrogen.

Notably, Reliance has made its green ambitions very clear, earmarking billions of dollars for the same. In such a scenario, a partnership with a conglomerate like Reliance has been cheered by investors of Olectra Greentech and has been one of the primary reasons for its recent share price surge.

Large recent order: Olectra recently won an order worth Rs 1,000 crores for 550 electric buses from the state of Telengana. The buses will be delivered over a period of 16 months. Notably, these buses can cover a range of 325 km on a single charge. The buses will operate between the busy route of Hyderabad in Telengana and Vijaywada in Andhra Pradesh.

The share price has reacted positively to this news as backing from a state government like Telengana paints an optimistic picture about the company’s prospects of bagging more such orders from other states too.

Certification receipt: Another very significant cause for the recent rise in the Olectra Greentech share price is certification received by its electric truck from the regulatory authorities.

Olectra Greentech’s electric truck received India’s first ever roadworthiness certification from Indian automobile regulators. This means that Olectra Greentech’s trucks will be the first to ply on Indian roads which are electric.

Thus, this major development has been a major contributor to the massive rise witnessed in the Olectra Greentech share price recently.

Strong Results: Olectra Greentech’s latest results showed strength with significant growth witnessed in both sales and profits from the previous year. Notably, revenues jumped by 23.1% from the previous year to Rs 256.4 crores while net profits soared 21% yearly to Rs 15.3 crores in the Oct-Dec 22 period. Moreover, all its major segments saw growth from the previous year.

Thus, solid results have also contributed to the appreciation for the Olectra Greentech share price in recent times.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.