Ola Electric Share: Ola Electric shares fell 6%, 'sell immediately' alert in brokerage report, target ₹20:The stock has already fallen 50% in the past year. So, the biggest question is: what should investors who already hold the stock do?

News Topical, Digital Desk : A sharp drop in Ola Electric's stock has raised investor concerns. The stock fell 6%, and brokerage Kotak Securities has cut its target price to ₹20, recommending an immediate sell. The stock has already fallen 50% in the past year. The biggest question, then, is what should investors who already hold the stock do? And what would be the right strategy for investors considering new purchases?

What should investors who hold Ola Electric shares do?
If you already own Ola Electric shares, it's important to first assess the situation rather than making a panicked decision. However, current signals are somewhat concerning. Kotak Securities has explicitly rated the stock "Sell" and lowered its target price to ₹20. This means the stock is expected to fall further from current levels.

Additionally, the stock has fallen 50% in the past year. The company's results have been weaker than expected, with
losses expected in the upcoming fiscal year 26, 27, and 28. The company's net worth may also be under pressure.

The biggest indicator is the decline in promoters' stake, which has fallen from 36.78% to 34.59%. When promoters reduce their stake, it typically impacts investor confidence.

What should be done?

However, if your investment is for a shorter period or you are risk-averse, you may want to consider a partial or complete exit, as brokerages have predicted further declines.

What are the warnings for investors considering buying now?
If you don't own Ola Electric shares and are considering buying, caution is essential at this time.

Why be cautious?
The brokerage has recommended a sell order. The target price is set at ₹20, which is lower than the current price. There is uncertainty about the company's future profits. Losses are expected in the coming years. This means that the stock is currently in the "risky zone."

There is also a positive sign, but caution is necessary.
However, FII and DII have increased their stake, which could be a positive sign. FII stake has increased to 4.08%. DII stake has increased to 7.28%. However, the negative brokerage report and the company's weak signals are more important at this time.