Shares of this small-cap automobile dealer surged 18 percent today after it signs an all-cash deal to acquire a 100% stake in its peer. In the last six months, the scrip has jumped over 20 percent from Rs 468.55 at the start of January 2023 to the current price level.
With a market capitalization of Rs 2,700 crores, the stocks of CarTrade Tech Limited are currently trading at Rs 574. The scrip witnessed an intra-day high price of Rs 577.70 indicating a gain of 18 percent compared to the previous closing levels of Rs 487.35.
Such movements in the stock prices are observed after the company, through a regulatory filing with the exchange dated 10th July 2023, announced that it has entered into a share purchase agreement with ‘Sobek Auto India Private Limited’ and its holding company ‘OLX India B.V.’.
The agreement is pertaining to the acquisition of a 100% stake in Sobek from OLX India B.V. in an all-cash deal worth approximately Rs 537 crores.
The company’s financials, on a consolidated basis, have reported positive changes as far as the operating revenues and after-tax profits are concerned.
The operating revenues took a shift from Rs 312 crores during FY21-22 to Rs 363 crores in FY22-23. Moreover, the after-tax profit figures transitioned from losses of Rs 121 crores to profits of Rs 40 crores keeping the timeframe the same.
The profitability ratios have turned positive in FY22-23 with the return on equity (RoE) reported to be 1.66 percent and the return on capital employed (RoCE) of 3.09 percent.
CarTrade Tech Limited is engaged in the business of providing multi-channel auto platforms. It operates a wide range of brands, some of which include CarWale, CarTradeExchange, AutoBiz, etc. The company offers various solutions around the automotive industry including transactions of buying, selling, financing, and many other activities.
Written by Amit Madnani
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