CarTrade Tech Share Price Hits Fresh Life High As Citi Hikes Target Price
Citi’s analysis of Cartrade Tech's third quarter results reveals strong performance, with top-line growth and earnings exceeding expectations.
Shares of CarTrade Tech rose nearly 15% on Thursday to touch fresh life high after Citi Research hiked its target price to Rs 1,820 from the earlier Rs 1,232 per share.
Citi’s analysis of Cartrade Tech's third quarter results reveals strong performance, with top-line growth and earnings exceeding expectations. The company's standalone business showed acceleration, while its remarketing business has bottomed out, with repossession volumes up after a prolonged slowdown, said the brokerage.
OLX India has also started showing growth following cost rationalisations. The consumer business, including Carwale, Bikewale, and OLX India, is gaining market share. OEM/dealer ad budgets are likely following suit, Citi pointed out.
The standalone business saw a 38% year-on-year revenue increase, driven by higher margins. The remarketing business saw a 27% year-on-year revenue growth, while OLX business saw a 5% quarter-on-quarter and 15% year-on-year growth.
Citi raised its FY25E/26E/27E Ebitda estimates by 19%, 12%, and 15%, respectively, citing higher standalone revenue and margins. It also raised its target price to Rs 1,820 per share and reiterated its 'buy' rating.
The higher multiples for the standalone, remarketing, and OLX businesses reflect growth acceleration and improving performance across verticals, Citi said in its note.
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CarTrade Tech Shares Hit Life High
Shares of Cartrade Tech rose as much as 14.58% to touch fresh life high of Rs 1,765.95 apiece. It pared gains to trade 9.93% higher at Rs 1,691 apiece, as of 11:15 a.m. This compares to a 0.54% advance in the NSE Nifty 50. The shares have risen 22.32% so far this week.
The stock has risen 85.42% in the last 12 months. Total traded volume so far in the day stood at 0.71 times its 30-day average. The relative strength index was at 64.
Out of six analysts tracking the company, five maintain a 'buy' rating and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 4.9%.
