CarTrade Tech shares soared 14% in early trading today following a positive update from Nomura. The brokerage has reiterated its ‘Buy’ rating on the stock, increasing the target price to ₹1,779 from ₹1,278. As of 10:42 AM, the shares were trading 13.06% higher at Rs 1,742.45.
Nomura’s bullish stance is driven by favorable industry dynamics that are expected to sustain growth across CarTrade’s OLX and consumer business segments. As a result, Nomura has raised its FY25-27 adjusted EBITDA estimates by 14-22% and increased adjusted EPS projections by 14-18%.
Notably, CarTrade’s consumer business growth forecast has been revised upward to 29%/26%/21% over FY25-27, up from the previous estimate of 20%. This reflects a stronger-than-anticipated performance outlook, further boosting investor confidence.
In the meantime, CarTrade Tech reported a significant turnaround in its financial performance for the quarter ending December, posting a net profit of Rs 42.7 crore, compared to a loss of Rs 24.2 crore in the same quarter last year. The previous year’s results were impacted by a one-time loss of Rs 45.6 crore, highlighting the improvement. Revenue grew by 27.2% year-on-year, reaching Rs 176 crore, while operating income (EBITDA) surged by 98.1%, reaching Rs 50.1 crore. The company’s EBITDA margin also expanded impressively to 28.4%, up from 18.2% in the corresponding period of the previous year.
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