Olectra Greentech shares up 3% on awarding contract to build EV facility

economictimes.indiatimes.com:

Olectra Greentech rose 3% to Rs 1,345 in Thursday's intraday trade on BSE after the electric bus manufacturer awarded a contract to Megha Engineering & Infrastructures (MEIL) for the construction of a greenfield electric vehicle manufacturing facility in Telangana. «We would like to inform you that, the Company has awarded a contract for the construction of the greenfield electric vehicle manufacturing facility on 150 acres of land situated at Seetharampur, Hyderabad, Telangana to Megha Engineering & Infrastructures (MEIL) which is the ultimate holding company and a related party to Olectra Greentech Limited,» the company said in an exchange filing. As per the contract, construction of the greenfield EV manufacturing facility will be completed within 12 months from the date of approval of the shareholders (July 19, 2023).

At 10.05 am, the scrip was trading 0.3% higher at Rs 1,309 on BSE. Meanwhile, it has delivered multibagger returns to its investors as the stock has surged 153% year-to-date, while it has rallied over 1850% in the last three years. As per Trendlyne data, the average target price of the stock is Rs 738, which shows a downside of 44% from the current market prices.

The consensus recommendation from one analyst for the stock is a 'Buy'. Technically, the stock's day RSI (14) is at 74.8. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.

MACD is at 121.2, which is above its center and signal Line, this is a bullish indicator. In 4 FY23, the company posted a 52% rise in consolidated net profit at Rs 27 crore as compared to nearly Rs 18 crore in the corresponding quarter of last fiscal. Meanwhile, consolidated revenue for Q4FY23 was at Rs 376 crore, which rose 39% from