The shares of the multi-channel auto platform provider plummeted up to 19 percent in today’s trading session after the well-known brokerage downgraded and gave a “sell” rating.
With a market capitalization of Rs 11,639.18 crore, the shares of CarTrade Tech Ltd were trading at Rs 2,443.35 per share, decreasing around 10.59 percent as compared to the previous closing price of Rs 2,732.90 apiece
The shares of CarTrade Tech Ltd have seen bearish movement after JM Financial, one of the well-known brokerages in India, has downgraded the stock to a ‘sell’ rating and slashed its target price from Rs 2,350 to Rs 1,900. The revised target implies a potential downside of about 19 percent from the earlier estimate, reflecting a weaker outlook and prompting cautious investor sentiment around the stock.
JM Financial highlighted concerns over CarTrade’s high valuation, noting it trades at 43x FY27 EBITDA, which they consider expensive given its heavy reliance on B2B revenue. Despite operating B2C platforms, the firm remains exposed to cyclical B2B spending. While OLX’s recovery is encouraging, JM Financial said it was expected and doesn’t alter its forecast.
The company delivered strong Q1FY26 results, with revenue rising 22 percent year-on-year to Rs 173 crore from Rs 142 crore. Net profit more than doubled, surging 104 percent to Rs 47 crore compared to Rs 23 crore last year, reflecting robust growth and improved operational efficiency.
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The company maintained its leadership as India’s top auto portal, used classified business, and vehicle auction platform. With ~75 million monthly active users, 100+ million app downloads, 95% organic traffic, 500+ physical outlets, and 1.4 million auction listings in FY26, it continues to strengthen its digital and physical presence nationwide.
Management expressed strong optimism across all business segments, highlighting expanding margins, operating leverage, and encouraging traction from new product initiatives, particularly OLX. Despite sluggish auto industry trends, the company remains resilient, leveraging its market leadership and vast untapped opportunities to drive growth, signaling confidence in sustaining momentum and scaling its diversified platform portfolio effectively.
CarTrade Tech is a leading digital marketplace in India, connecting buyers and sellers for vehicles through its platforms like CarWale, BikeWale, and OLX. The company aims to transform the marketplace using technology to bring trust and transparency, simplifying the entire process for its users and partners. Its platforms are immensely popular, attracting an average of 7 crore unique visitors every month, making it a premier destination for vehicle buyers.
Written by Abhishek Singh
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