Ola Electric Mobility Limited (NSE:OLAELEC) Analysts Are Cutting Their Estimates: Here's What You Need To Know

As you might know, Ola Electric Mobility Limited (NSE:OLAELEC) recently reported its quarterly numbers. Revenues of ₹4.6b missed forecasts by 18%, but at least statutory losses were much smaller than expected, with per-share losses of ₹0.75 coming in 21% smaller than what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the latest results, Ola Electric Mobility's eight analysts are now forecasting revenues of ₹23.6b in 2027. This would be a substantial 28% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 12% from last year to ₹3.29. Before this latest report, the consensus had been expecting revenues of ₹30.4b and ₹3.39 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Ola Electric Mobility

The consensus price target was broadly unchanged at ₹29.88, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Ola Electric Mobility analyst has a price target of ₹40.00 per share, while the most pessimistic values it at ₹20.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ola Electric Mobility's past performance and to peers in the same industry. For example, we noticed that Ola Electric Mobility's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 39% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 50% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.0% annually. So it looks like Ola Electric Mobility is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded Ola Electric Mobility's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Ola Electric Mobility. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Ola Electric Mobility going out to 2029, and you can see them free on our platform here..

You still need to take note of risks, for example - Ola Electric Mobility has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.