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  1. Olectra rally 7% on order win from BEST

Olectra rally 7% on order win from BEST

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2 min read • Updated: February 22, 2024, 6:41 PM

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Olectra Greentech, India's leading electric bus maker, secured a massive order for 2,400 buses. Shares rally 7% post announcement on bourses.

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Olectra gains on large order wins

Leading electric commercial vehicle manufacturer Olectra Greentech informed stock exchanges today that it has secured a letter of award for 2,400 electric buses from Brihan Mumbai Electric Supply and Transport Undertaking (BEST). The news sent the company's shares soaring 7%.

Olectra has secured a lucrative order to supply, maintain, and operate 2,400 electric buses for BEST on a gross contract basis. The deal translates to approximately ₹4,000 crores for Olectra, significantly boosting their revenue.

With this win, Olectra's current net order book for electric buses stands at 8,088 units. The company currently has a capacity of 1,500 units per year, but a new greenfield plant with a capacity of 5,000 units (scalable to 10,000) is being set up to meet demand.

Olectra is India's leading electric bus manufacturer, operating both inter-city and intra-city services. The company is expanding its product line to include electric trucks and tippers. Olectra's stock has seen remarkable growth, jumping over 360% in the past year and 21% in the last month. Net sales also saw a 33% increase in the December quarter.

This significant contract win solidifies Olectra's position as a leader in the Indian electric vehicle market and further strengthens their growth prospects.

After firing up 7% post announcement, shares of the company are currently trading 2.2% higher at ₹2108 per share.