Ather Energy vs Ola Electric: Why did one stock slip and the other turn multibagger?
Ather Energy and Ola Electric are two of the most prominent brands in the electric two-wheeler market. They are operating in the same market under the same policy conditions and offer the same product. But where did they differ to create such vastly different investor perception?
Kolkata: The world and India is turning towards electric vehicles. As the deadline of zero net emission by 2070 stares India in the face, one of the areas where the government is focusing its energy to control emission is the automobiles market. Accordingly, it is providing incentives to electric vehicles. Both Ather Energy and Ola Electric manufacture electric two-wheelers, which constitutes a high-growth sector.
Unfortunately, the experience of the investors in these two companies has been vastly different. While those who invested in Ather Energy IPO doubled their capital, investors in Ola Electric shares suffered big losses. But both are in the same sector, in the same market and manufacture the same product. What is the difference in their business models that has led to this significant difference in the performance of the two stocks? Let's have a look.
Multibagger Ather Energy
The market cap of Ather Energy was Rs 12,300 crore at the time of listing on May 6, 2025. Now it stands at Rs 26,862 crore. The rise in stock prices is more than 115% from its listing price and about 135% from its issue price level. In less than a year, the Ather Energy stock has generated significant profits. Experts are of the opinion that the success of this company is an outcome of meticulously planned and executed strategy. The elements of this strategy are robust product engineering, premium brand positioning and reliable growth.
Ola Electric shares down
Ola Electric shares were priced at Rs 76 at the IPO and then it got listed at the same price. After rallying initially to about Rs 150, the stock crashed to below Rs 40. The trend now remains weak though it is consolidating in the range of Rs 45-65. But why is this fall? Is Ola's business strategy responsible?
Analysts are of the opinion that Ola managed to create a big noise initially through brand building. However, it failed to live up to the promise and faltered in product quality and operational management. Ather Energy was cut a different figure by quietly focusing on product quality, reliability and building consumer trust. The market rewarded the latter.
What's the road ahead?
Ather is the stronger contender in the short term and Ola needs to regain trust of the market to rebuild its journey. In the long term, the growth of the EV industry holds significant opportunities for both players. Investors have different perceptions of the two companies and their two strategies right now.
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