During Monday’s morning trading session, the shares of one of India’s largest online classifieds and auto auction platforms surged by nearly 3.1 percent on BSE. The stock has maintained a positive trend despite a weak market, where most stocks were trading in the red.
Currently, the stock is trading close to its listing price after a period of decline, showing signs of a recovery. In this article, we have analysed the company’s performance and explored the potential reasons driving investor interest in the stock.
Price Movement
With a market cap of Rs. 8,583.8 crores, the shares of CarTrade Tech Limited opened in the green at Rs. 1,848.45, up by around 2 percent, as compared to its previous closing price of Rs. 1,812.65. The stock has delivered multibagger returns of nearly 186 percent over a one-year period, while over 85 percent of positive returns in the last six months.
The company listed its shares on the BSE and NSE on 20th August 2021, with the IPO price set at Rs. 1,618 per share, but the stock debuted at a slightly lower price. On the BSE, it opened at Rs. 1,600, and on the NSE, it opened at Rs. 1,599.8, reflecting a discount of about 1.1 percent from the issue price.
On March 24, 2023, the stock was trading at Rs. 377.2, reflecting a nearly 75 percent decline from its listing day closing price of Rs. 1,500.1. However, the stock has since rebounded significantly and is now trading at Rs. 1,805, marking an impressive recovery of around 379 percent from its low of Rs. 377.2.
Financial Performance
CarTrade Tech reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 27 percent, rising from Rs. 138.6 crores in Q3 FY24 to Rs. 176.2 crores in Q3 FY25.
Similarly, during the same period, turning around from a net loss of Rs. 23.5 crores to a net profit of Rs. 45.5 crores. The company experienced exceptional growth across all three business verticals, with all achieving highest ever revenues, profits, and margins.
Strategic Acquisition
In July 2023, CarTrade signed an agreement to acquire the operations of OLX in India from OLX India BV (OIBV). The deal includes the acquisition of a 100 percent stake of Sobek Auto India Private Limited, consisting of the OLX Autos transaction businesses and the OLX classifieds platform for a cash consideration of Rs. 537.43 crores.
In Q3 FY25, OLX demonstrated continuous growth since the acquisition, with an 80 percent surge in profits and a revenue increase of 16 percent to Rs. 52 crores. EBITDA for OLX improved by 24 percent, with margins rising to 26 percent from 24 24 percent last year. Management is optimistic about OLX’s future potential, citing strong growth opportunities in both used auto and non-auto segments.
Operational Highlights
In Q3 FY25, the company received average monthly unique visitors at ~79 million, more than 95 percent of which are organic. CarTrade Tech is now present in 450+ Physical Locations, including Shriram Automall, CarWale abSure and Signature Dealers & OLX India Franchisee.
Revenue from CarWale and BikeWale increased by 38 percent YoY, driving an impressive 172 percent increase in net profit. The company also achieved a 35 percent margin in its consumer group business, setting a benchmark of excellence in the industry.
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Key Growth Drivers
The rising user traffic and enhanced user experience have played a pivotal role in the company’s strong performance. The management believes that OEMs are shifting digital ad budgets toward measurable platforms, benefiting platforms like CarWale and BikeWale. New initiatives, such as consumer financing options, are being introduced to further enhance user engagement and fuel long-term growth.
Cost Management Strategy
Margins are expected to strengthen as revenue expands, with only minimal increases in operational costs across business segments. The company remains committed to maintaining strong unit economics, ensuring that revenue growth does not result in proportionate cost escalations.
Strategic Developments
Integration between CarWale and OLX is progressing, with a focus on streamlining backend systems while keeping both brands distinct for consumers and dealers. The remarketing business is leveraging physical infrastructure with 450+ locations, boosting auction volumes and creating added value for banks and NBFCs.
Future Outlook
Management remains confident in sustaining growth momentum, particularly within the consumer group and remarketing businesses. The long-term growth potential of OLX is a key focus area, with management viewing it as a major opportunity in both used auto and non-auto segments over the next decade.
About the Company
CarTrade Tech Limited is a multi-channel auto platform provider company with coverage and presence across vehicle types and Value Added Services, offering a variety of solutions across automotive transactions for buying, selling, marketing, financing, and other activities.
The company operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. The platform connects new and used automobile customers, vehicle dealers, vehicle OEMs, and other businesses to buy and sell different types of vehicles.
Written by Shivani Singh
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