JKB Financial Services Ltd.

As on : 11-Sep-2025

Hot Pursuit
11-Sep-2025 11:02

CarTrade Tech drops about 15% in two days

The selloff was sparked after a domestic brokerage downgraded the stock to sell from hold, even as it raised the price target to Rs 2,350 from Rs 1,900. The broker flagged rich valuations, noting CarTrade trades at 43x FY27 EBITDA while still relying almost entirely on B2B revenues.

It added that while CarTrade runs consumer-facing platforms, they remain exposed to the cyclical nature of B2B spending. Recovery in OLX was termed 'on expected lines,' with no change in forecasts. Rising adoption of generative AI tools like ChatGPT and Perplexity over Google Search was also cited as a risk for the company.

Despite the correction, the stock remains up 39.4% in three months and 153.35% over the past year.

On 10 September 2025, the company said the government's recent GST cuts on passenger vehicles, two-wheelers, and used vehicles would boost affordability, lift consumer sentiment, and accelerate volumes across new and used categories. CarWale and BikeWale have already recorded a 25% surge in consumer traffic following the tax reduction.

Management expects momentum to strengthen during the festive season, supported by higher dealer and OEM participation, improved affordability, and seasonal demand. 'The GST reduction is a game-changer for India's automobile industry,' said Banwari Lal Sharma, CEO ' Consumer Group, adding that it will act as a catalyst for both new and used segments.

CarTrade Tech operates across multiple auto platforms, including CarWale, CarTrade, Olx India, Shriram Automall, BikeWale, CarTrade Exchange and Adroit Auto. The company posted a 105.59% YoY rise in consolidated net profit to Rs 47.06 crore in Q1 FY26, while revenue from operations grew 22.27% to Rs 173.03 crore.

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