Multibagger Stock: CarTrade Tech surges 150% in just 11 months, 300% in less than 2 years

Multibagger Stock: CarTrade Tech, one of India’s largest online classifieds and auto auction platforms, has been making remarkable strides on Dalal Street in recent months, with its shares continuing to surge despite broader market weakness.

The stock, which began its upward rally in October 2024, has maintained strong momentum, gaining 90% to date. Since March 2024, it has surged by 150%, and looking even further back, shares have risen from ₹390 in March 2023 to the current trading price of ₹1,582, marking a 305% gain.

The company, which debuted on Dalal Street in August 2021, faced a challenging 18-month period, hitting new lows. However, a strong recovery began in April 2023 as improving financials bolstered investor confidence, shifting sentiment positively. Since then, the stock has sustained its gains, reflecting renewed market optimism.

CarTrade Tech owns and operates under several brands, such as CarTrade, CarWale, and AutoBiz. Through these platforms, the company enables new and used automobile customers, vehicle dealerships, OEMs, and other businesses to buy and sell their vehicles simply and efficiently.

In the December quarter, CarTrade Tech reported its strongest financial performance to date across all three business segments. The company’s total revenue stood at ₹176 crore, with an adjusted EBITDA margin of 30.3%.

Its New Auto segment recorded a 38% year-on-year (YoY) revenue increase and an impressive 172% rise in PAT, while the Remarketing business delivered a 27% revenue increase and a 178% jump in PAT.

The recently acquired OLX India continued its growth trajectory, posting a 15% YoY revenue increase in Q3. On the bottom line, the net profit jumped 92% to ₹45.33 crore. As a product- and technology-led organisation, the company said that it will continue to build on its scalable digital platform, focusing on enhancing customer experience and expanding its market share.

The company emphasised that its progress so far positions it strongly for sustained growth as it continues transforming the digital marketplace.

Analysts bullish on stock after strong Q3 show

Following the strong Q3 performance, domestic brokerage firm JM Financial raised its growth estimates for the New Auto and Remarketing segments by 2-3% over FY25-29E. However, due to slower-than-expected growth in OLX India, the brokerage cut its revenue projections for that segment by 2-3%.

Overall, JM Financial increased its total revenue estimates marginally by 1% over FY25-29E and, given the company’s focus on cost optimisation and profitability, raised its EBITDAM estimates by 60-100 basis points.

The brokerage retained its ‘buy’ rating on the stock with a target price of ₹1,820 per share. It noted that while the company surprised the market with 38% and 27% YoY growth in the New Auto and Remarketing segments, respectively, these numbers were achieved on a relatively low base, benefiting from ad spend recovery and higher repossessions.

JM Financial expects medium-term growth rates to remain in line with earlier projections—21-24% for New Auto and 11-14% for Remarketing—but anticipates that Q4 could still witness strong growth as the recovery extends for another quarter.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.