This e- commerce business was trading marginally low at Rs. 507.4 on Wednesday. JM Financial called out the stock for its bullish potential and gave a buy call for the stock at an upside of almost 40% after it required Sobek Auto for Rs. 535 crore.
Share prices of Cartrade Tech Limited opened in green at Rs. 514. The price per share went up till Rs. 516, its intra- day high and went as low as Rs. 502.
Recently, the company had announced its analyst/investor meet and published its outcome on 21st August along with the audio recordings of the earnings conference call.
The chairman and managing director of the company, Vinay Sanghi disclosed the details of their new acquisition of 100% stake in Subek Auto which consists of OLX classified businesses along with its C2B transaction business.
Cartrade acquired the whole business for Rs. 535 crore including Rs. 115 crore of liquid assets. The net revenue for the quarter ended June 23 is less by 0.08%. The net profit for the last quarter was Rs. 17.49 crore which fell by 0.2% to Rs. 13.51 crore.
JM Financial gives a buy call for shares of Cartrade at an upside of almost 40% for Rs. 710 per share.
The acquisition in place shows upside opportunities for the stock in the near future on the basis of upcoming growth through OLX new classified as well as its C2B transactions businesses. The current financials of the company may not give a positive outcome for the stock but its expanding plans have surely made an effort.
Cartrade India Limited, established in the year 2000 is an online platform for users to fulfil the purposes of selling and buying new and used vehicles. After acquiring OLX India, Cartrade is now one of the largest platforms to sell and buy automobiles and non- automotive products.
Written by Bhumika Khandelwal
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