The share price of electric bus manufacturer Olectra Greentech, a part of the Hyderabad-based conglomerate Megha Engineering and Infrastructures Ltd (Meil), has rallied nearly 250% in the last one year, outperforming the BSE benchmark Sensex and the auto index, which rose 10% and 7%, respectively, during this period. On Tuesday, shares of the electric mobility player gained 5% after it bagged the biggest ever order worth ₹3,675 crore for 2,100 electric buses from Brihanmumbai Electric Supply and Transport (BEST).

Extending gains for the third straight session, Olectra Greentech shares opened higher at ₹592.60 on the BSE against previous closing price of ₹564.55 and rose as much as 5% to hit a high of ₹592.75 in the early trade. On the volume front, there was a spurt in buying as 0.3 lakh shares worth ₹1.77 crore changed hands over the counter in the first hour of trade, as against two-week average volume of 0.34 lakh stocks. In comparison, the BSE Sensex was trading 192 points lower at 54,095 levels.

The smallcap stock traded 248% higher than its 52-week low of ₹170 touched on June 1, 2021. It attained a 52-week high of ₹940.45 on December 16, 2021. The share seemed to have lost momentum in the calendar year 2022, with stock price falling 30% on year-to-date (YTD) and more than 11% in the past one month. With a market capitalisation of ₹4,853.8 crore, the stock traded higher than 5-day moving averages, but lower than 20-day, 50-day, 100-day, and 200-day averages.

Stock gets boost from new order

Olectra Greentech in an exchange filing on Monday said it has won an order worth ₹3,675 crore to supply 2,100 electric buses to the Brihanmumbai Electric Supply & Transport (BEST), Mumbai's public transport service and electricity provider. This is touted to be the biggest ever order in the Indian electric mobility history.

The company bagged the order after Evey Trans Private Ltd (EVEY), an arm of Olectra, emerged as an L1 (least quoted) bidder in a tender issued by BEST. “Evey Trans Private Limited (EVEY) has been declared as L- 1 (Least Quoted) bidder (as per the disclosure given on 07th May 2022), now it is awarded with Letter of Award for 2,100 Electric Buses from one of the State Transport Undertakings,” Olectra said in a BSE filing.

The auto company said that the order for the supply of the 2,100 electric buses is on a gross cost contract (GCC) / OPEX model for a contract period of 12 years. “The value of these 2,100 Buses supply would be approximately ₹3,675 crores for Olectra. This transaction between Olectra and EVEY is to be considered as related party transactions and shall be on arm's length basis,” it said.

As per the release, EVEY will procure (either directly by itself or through its special purpose vehicle) these 2,100 electric buses from Olectra Greentech and which will be delivered over a period of 12 months. Maintenance of these buses shall also be undertaken by Olectra during the contract period, it added.

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