New Delhi, June 10 -- Just a few months ago, Ola Electric had looked like a faint shadow of the company investors had backed at its blockbuster IPO. Since then, the narrative has turned. The stock has more than doubled from its March lows to around Rs.47.

What changed?

Perhaps, investors are betting that the worst may be behind it. Registrations have recovered from their recent slump, the company has raised Rs.780 crore through a qualified institutional placement, and management's cost-cutting efforts appear to be gaining traction.

But, as a pure-play electric scooter manufacturer, the investment case for Ola Electric has looked increasingly difficult over the past year.

Competition intensified, market share slipped, losses persisted,...