CarTrade Tech’s stock experienced a significant drop of up to 6.5% following the release of its second-quarter financial results. The company reported a net profit of Rs 66 crore, a slight increase from the previous year’s Rs 64 crore. Revenue from operations saw a 10% rise, reaching Rs 213 crore compared to Rs 193 crore in the same period last year.
Despite the overall profit increase, the company’s stock fell. However, global brokerage firm Nomura maintained a positive outlook, raising its target price for the stock to Rs 3,377. Nomura cited strong momentum in OLX India, which reported a 26% year-over-year revenue growth and a 36% increase in EBITDA, as a key factor.
Analysts anticipate improved growth in CarTrade Tech’s consumer business in the latter half of FY27 and into FY28, supported by easing demand pressures and an anticipated increase in new car launches. Nomura also noted that while the business faced an adverse base effect in the second quarter, it sees significant medium-term growth potential for OLX as its monetization strategies progress.
The management highlighted the company’s strong brand equity and content leadership, attracting approximately 76 million average monthly unique visitors in Q2FY27, with organic traffic comprising 96% of the total. CarTrade Tech has expanded its physical presence to over 500 locations through various partnerships and franchises, enhancing its nationwide reach.
Also read:UAE President Praises Pilot’s Bravery After In-Flight Attack
Source: economictimes.indiatimes.com
