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Car Trade Tech’s stock increased by more than 9%, building on the strong gains from the previous trading session. The company said on May 6 that its net profit for the quarter ending in March 2024 increased by 50% to Rs 22.5 crore. This is when the company’s 18% rapid surge in two days occurred.
The company’s classifieds division at OLX played a major role in the 51 percent YoY increase in revenue to Rs 145.27 crore.
CarTrade Tech is a digital ecosystem for the automotive industry that links OEMs, dealers, banks, insurance providers, and other stakeholders with car buyers. CarTrade, CarWale, and AutoBiz are just a few of the names that the corporation owns and uses.
In Q4FY24, its EBITDA increased by 23% year over year to Rs. 49.11 crore, and its EBITDA margins increased to 18.9% of total revenue for the period.
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Further Stats of Car Trade Company
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The shares of the multi-channel car platform were trading 7.4% higher on the National Stock Exchange (NSE) at Rs 870.80 at 9:42 a.m. 15 lakh shares of the company have changed hands on the BSE and NSE combined so far today, compared to the 4 lakh shares that have traded on average during the past month.
In research published on April 24, JM Financial stated that the stock continues to be undervalued since investors are disappointed after losing money on the stock given its performance since 2021.
“Moreover, CarTrade’s business models and moats are yet to be understood by the investor community, necessitating the need to elaborate on them in greater depth,” it continued.
JM Financial analysts think CarTrade has levers in place to sustain 20–25 percent topline growth and strong margin improvement potential, all while operating in a relatively benign competitive environment.
With a target price of Rs 1,000 by March 2025, the firm maintained its ‘buy’ recommendation on the company, suggesting a potential upside of 23.6 percent from the previous close. It anticipates that the stock will continue to compound at a rate of 20–25 percent annually.
See Also: CarTrade stock surges 7% following a 50% increase in net earnings in Q4.
With a one-year beta of 0.4, CarTrade Tech shares exhibit extremely little volatility. The stock has produced multi-bagger returns of 110% during the past year.
The benchmark Nifty 50 has increased by about 3 percent over this time, whereas the stock has surged 20 percent so far this year.
Further read: SEBI turn downs NSE’s Proposal of extending trading hours for F & O
