Goldman Sachs Halves Ola Electric Target, Citing Growth & Cash Flow Concerns

• Goldman Sachs downgraded Ola Electric to Neutral, slashing its target price by 50% from 52 rupees to 26 rupees.
• Brokerage reduced earnings estimates for FY26-FY28, projecting slower growth and a mid-single-digit market share by FY30.
• Concerns raised over continued cash burn, potential fundraising needs within 12-18 months, and its impact on existing shareholders.
• Key challenges include building a strong service network, stabilizing leadership, and improving product quality and reliability.
• Share decline attributed to increased EV competition, profitability uncertainty, cash flow concerns, and brokerage downgrades.