Amid a broader market rally, shares of CarTrade surged as much as 11.22% to reach INR 1,542 apiece during the early trading hours today.
However, the shares shed some gains to trade at INR 1,500 on the BSE at 1:18 PM today.
CarTrade’s rally aligns with the broader market surge today, with both the Sensex and the Nifty 50 up 2.25% and 2.12% at 1:30 PM.
This comes after the US paused tariff hikes for all countries, excluding China, which now faces a steep 145% tariff.
At the previous closing price, the share is at a downside of 26.45% from its 52-week high of INR 1,885 reported on March 21, the day the global investment management firm Vanguard Group bought its 7.13 Lakh shares.
CarTrade shares have given its investors a negative return of 3.4% in the last month at the current market price.
Also, the stock is down 1% on a year-to-date basis. During the same period, the benchmark index Sensex has given a return of 4.84%.
CarTrade shares took a heavy beating on Monday when the entire Indian bourses collapsed in the 5-6% range.
Of the 32 stocks under Inc42’s radar, CarTrade emerged as the biggest loser on Monday, with its shares falling 12.24% to end the day at INR 1,464.50.
Despite today’s rally, the stock is down 3.8% (at the previous closing price) from its listing price of INR 1,600 on the BSE. CarTrade was listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 20, 2021.
On the financial front, the company posted a consolidated net profit of INR 45.53 Cr in Q3 FY25, a significant turnaround from a loss of INR 23.55 Cr in the year-ago quarter. Sequentially, net profit soared 48% from INR 30.72 Cr in Q2 FY25.
The Q3 profit comes despite the company incurring a one-time loss of INR 45.51 Cr after its subsidiary, Sobek Auto India, shut down its auto sales division (C2B business) due to unit economics challenges.
CarTrade currently has a price-to-earnings (P/E) ratio of 110.67 while its earnings per share EPS (TTM) is 13.44.
Brokerage firm Nomura maintained a buy rating on January 31 for CarTrade, raising its target price for CarTrade to INR 1,779 from INR 1,278. In the same month, brokerage B&K initiated coverage on CarTrade Tech with a buy rating and target price to INR 1878.
CarTrade Tech bought OLX India’s auto and classifieds business in August 2023.
Founded in 2009 by Vinay Sanghi and Rajan Mehra, CarTrade facilitates the sale of both new and used vehicles. It operates brands like OLX India, CarWale, BikeWale, CarTradeExchange, Shriram Automall, Adroit Auto, and Autobiz. It also provides technology solutions to OEMs and dealers.
It competes with major players like CarDekho, Droom, and CARS24 in India’s rapidly growing online automotive classifieds market. Except for CarTrade, its competitors like CarDekho, Cars24, Spinny, and Droom are still operating at a loss.
However, at least three of these unicorns are preparing for IPOs. Droom is slated to go public by June 2025, while Cars24 and CarDekho are also gearing up to hit the stock market soon.
OLX India, CarWale, BikeWale, CarTradeExchange, Shriram Automall, Adroit Auto,
