Tale of the Tape 

Happy weekend y’all. You’ve earned this one!

Markets ended another boring week with minor losses. Investors remained on the sidelines as the lack of any clear positive trigger + global trade uncertainty dampened sentiment. PS - Midcaps and Smallcaps continued to outperform. Check out the Stocktwits Sentiment Meter:

Most sectors ended in the red on Friday. Metals (-1.7%) and IT (-1.2%) fell the most. PSU Banks (+2.9%) were up big!

Auditors warn that Ola may go bankrupt after its disastrous Q4 results. Will FY26 be the year of turnaround for Bhavish & Co? Read our top story below.

Suzlon rallied +9% on blockbuster results. Bajaj Auto (-3%) was the top loser on Nifty despite steady earnings. More details below.

Alkem Labs cracked -4% after Jefferies lowered its target price to Rs 4460 p/sh; indicating a further -12% correction from current levels.

Kiri Industries (-9%) will sell its entire 38% stake in DyStar Global for roughly Rs 6000 crore. PS - the company’s market cap is Rs 3573 crore.

Results reaction. Mazagon Dock Shipbuilders tanked -7%. SJVN (-6%) was under pressure after reporting a net loss.

LTI Mindtree was in focus after its MD & CEO, Debashish Chhatterjee abruptly resigned.

India Glycols approved a 1:2 stock split.

Scoda Tubes IPO got oversubscribed 57x on the final day.

Stock
Ola Electric: Darkest Near Dawn?

Ola Electric tanked nearly -10% intraday after a shocker of Q4! Revenue more than HALVED to Rs 611 cr led by a sharp fall in deliveries (51k units vs 1.1 lakh YoY). FYI - Ola’s market share fell from ~50% at the start of 2024 to ~20% currently. Ola blamed intense competition, operational challenges and slower EV adoption for the market share loss. Finally, losses DOUBLED to Rs 870 cr due to higher expenses + a one-off.

But that’s not all…

• The company’s auditors raised concerns over Ola going bankrupt mainly due its Rs 2,391 cr of negative operating cash flows. PS - the company may raise Rs 1,700-cr in debt to deal with this, which seems crazy just after raking in Rs 5,000 cr through its IPO last year. 

• The firm took a one-off warranty cost of Rs 250 cr in Q4. This was to account for higher provisions for its Gen-1 and Gen-2 scooters. Put simply: their scooter quality was so sh*t they needed to shell out more in free replacements than expected.

• Ola has delayed implementation of its in-house battery pack (aka Bharat Cell) which sucks because it would’ve helped in lowering overall production costs. Consequently, it’s postponed its profitability goal for its automotive segment.

Looking ahead, there are positive triggers. Ola is betting big on its motorcycle line-up; deliveries started going out recently and should reflect from Q1FY26. As it moves more vehicles to its Gen-3 platforms, its gross margins should improve! 

On the flipside, initial sales data for Q1FY26 doesn’t look great. Its market share dropped to 20% in May so far. Also, just 15,221 Ola scooters were registered this month so far vs 37,388 units last year. PS - Kotak downgraded the stock and cut its target price to just Rs 30 p/sh; -40% downside from current levels!

Specials
Exclusive Promoter Interview!

Belrise Industries just hit the market. We sat down with Swastik Badve, promoter of the company, to know about its operations, 5-year vision and more.