Ola Electric Mobility Share Price: These are the 5 reasons due to which Ola shares rose by 16% today:

News Topical, Digital Desk : Ola Electric Mobility Share Price: Ola Electric shares saw a jump of up to 16% on Monday, 14 July. The company released the business results for the April-June quarter, after which the stock has seen a tremendous rise. During this period, about 30 crore shares were traded, which is many times more than the company's average of 2.5 crore shares in the last 20 days. Here are the 5 main reasons due to which the shares rose so much-

Improvement in quarterly results
The company's net loss has increased compared to last year, but it is less than the loss of ₹ 870 crore in the March quarter.

Earnings have halved compared to last year, but have increased from ₹ 611 crore in the March quarter. Along with this, sales volume has also improved quarter on quarter.

Improvement in gross margin Gross margin has improved in the June quarter and the management believes that it will improve further. Production-linked incentive schemes (PLI) will also help in margin improvement. Gross margin is expected to improve by about 1,500 basis points.

Positive performance of auto sector The company's auto division met its targets for the quarter and has been positive on an EBITDA basis. The management said that cash generation in the auto sector is also possible soon.

Better EBITDA margin The company's EBITDA margin for the full financial year is estimated to be 5%, which will be better than the negative 11.6% reported in the June quarter.

Correction after huge fall The stock was not only below its post-listing all-time high but also below the IPO price. In early trade on Monday, the stock was 48% below the IPO price of ₹ 76 and 75% below the post-listing all-time low of ₹ 157. After this fall, investors have shown interest in the shares. On Monday, Ola Electric Mobility shares are trading at ₹ 45.93 with a gain of 15.4%.