CarTrade Tech Soars Amid Market Challenges

CarTrade Tech, one of India’s leading online auto auction and classifieds platforms, has been on an impressive upward trajectory on Dalal Street. Despite a generally bearish market, this stock has shown remarkable resilience, marking gains month after month. Over the past seven months, it has achieved an astonishing 100% increase, climbing from ₹848 to ₹1700. February was particularly noteworthy, delivering a 25.42% return, while January also saw a significant rise of 11.15%. Currently, the stock is up 10% this month, recently hitting a record high of ₹1,889 per share, tantalizingly close to the ₹2,000 milestone.

A Comeback Story Since 2021

CarTrade Tech made its debut on the stock market in August 2021, but the road has not been smooth. The company encountered a difficult 18 months, with shares hitting new lows. However, a remarkable turnaround began in April 2023, fueled by improved financial health and a shift in investor sentiment. Since its all-time low, the stock has surged by 400%, showcasing its potential despite prior setbacks.

Impressive Financial Performance

The company’s recent quarterly performance is nothing short of stellar. In the December quarter, CarTrade reported a 27% year-on-year revenue growth, underpinned by a robust 38% increase in its standalone classifieds business. Additionally, its subsidiary, SAMIL, also contributed with a 27% YoY growth, alongside incremental revenues from the OLX acquisition, which saw a 4.5% quarter-on-quarter increase.

• Key Highlights:
  • Monthly unique visitors reached 49 million, with a 28% YoY increase.
  • An impressive 92% of this traffic came from organic sources.
  • Vehicle listings on SAMIL grew by 22% YoY to 365K.
  • Vehicle sales also saw a 29% YoY increase, totaling 59K.

The profit after tax for this quarter was ₹45.53 crore, a significant rebound from a loss of ₹23.55 crore during the same period last year.

About CarTrade Tech

CarTrade Tech operates a multi-channel platform covering various vehicle types and value-added services. It manages several brands, including CarWale, CarTrade, OLX India, Shriram Automall, BikeWale, and Adroit Auto. These platforms cater to new and used vehicle buyers, dealerships, OEMs, and other businesses, facilitating seamless transactions in the automotive space.

• Platform Reach:
  • Each of CarTrade’s main platforms has exceeded 150 million unique visitors annually.
  • More than 90% of traffic is organic, showcasing the effectiveness of their outreach.
  • The remarketing business has achieved an impressive 1.5 million listings for auctions.
  • Currently, CarTrade operates in over 450 physical locations across India as of December.

Future Outlook

With robust growth indicators and a significant uptick in market presence, CarTrade Tech is poised for continued success in the evolving automotive marketplace. Investors and analysts alike are keeping a close watch on its performance as it navigates the challenges and opportunities ahead.