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3h ago

CarTrade Tech Extends Gains After Navratri Traffic Record as Elara Initiates Buy

Elara cites low acquisition costs alongside a cash-rich balance sheet to support a profitable scale thesis.

GST cut effect: CarTrade Tech clocks bumper sales in Navratri, stock gains 4%
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CarTrade Tech’s Platforms, CarWale & BikeWale Traffic Soars 74% to Record High This Navratri

Overview

  • Shares rose as much as 4.36% on September 24 to Rs 2,511, marking a second day of advances and leaving the stock 8.82% below its September 9 peak.
  • Elara Capital initiated coverage with a Buy and a Rs 3,590 target price, indicating roughly 43% upside from the day's high.
  • CarTrade said September 22 delivered an all-time single-day traffic record on CarWale and BikeWale, up 74% versus last Navratri's first day and 60% above August's daily average, which it linked to festival demand and a recent GST rate cut.
  • Elara forecasts FY25–28 growth including MUV CAGR of 8.6%, sold auction units CAGR of 15.4%, and OLX India GMV CAGR of 11.9%, with EBITDA margin expanding to 30.6% by FY28E.
  • The brokerage notes a debt-free balance sheet with about Rs 750 crore net cash and flags risks involving OLX monetisation, integration execution, and auction cyclicality.