HSBC raises Ola Electric target price to Rs 49 but sticks with hold rating. What’s behind the caution?

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HSBC ups target price to Rs 49 (from Rs 45) after a Q1 gross margin beat, but maintains a Hold rating citing limited upside.
Q1 gross margin at 25.8% vs estimate of 19%, driven by 11% cost savings from new Gen-3 scooter platform.
PLI concerns linger: HSBC warns Ola may miss key cell manufacturing milestones, risking Rs 1,000 crore penalty.
Stock trades at 3.8x FY26 EV/sales, with structural risks from EV competition, execution issues, and regulatory delays

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