Olectra Greentech shares jump 6% after Q2 net profit soars 156% YoY

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, ETMarkets.comLast Updated: Oct 23, 2024, 10:42:00 AM IST

Synopsis

Olectra Greentech's shares rose nearly 6% after reporting a 156.4% YoY profit increase to Rs 47.7 crore for Q2. Revenue surged 70.5% to Rs 523.7 crore, boosting market confidence.

Shares of electric vehicle maker Olectra Greentech jumped nearly 6% to Rs 1,715.8 in Wednesday's intraday trade on the BSE after the company reported a 156.4% year-on-year (YoY) increase in net profit, reaching Rs 47.7 crore for the second quarter ended September 30, 2024.

In the corresponding quarter of the previous fiscal year, Olectra Greentech posted a net profit of Rs 18.6 crore. The company’s revenue from operations surged 70.5% to Rs 523.7 crore, compared to Rs 307.2 crore in the year-ago period.

At the operating level, EBITDA stood at Rs 81.2 crore in the second quarter of this fiscal over Rs 40.6 crore in Q2 of FY24.

The EBITDA margin stood at 15.5% in the reporting quarter against 13.2% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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At 10:05 am, the scrip was trading 2.9% higher at Rs 1,668 on BSE. Its shares have surged 21% in 2024 to date and 190% over the past two years, with the company currently holding a market capitalization of Rs 13,685 crore.

As per Trendlyne data, the average target price of the stock is Rs 2,086, which indicates an upside of 25% from the current market prices. The consensus recommendation from one analyst for the stock is a 'Strong Buy'.

In technical terms, the relative strength index (RSI) of the stock is currently at 44.4, signalling it's neither trading in the overbought nor in the oversold territory. Additionally, the MACD is at 17.6, which is above its center line, but below the signal line.

Olectra Greentech was established in 2000 and pioneered the introduction of electric buses in India in 2015. It is also India’s largest manufacturer of silicone rubber/composite insulators for power transmission and distribution networks.

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