Brokerages Nomura and UBS have “buy” ratings each on Cartrade Tech shares.
Nomura
The brokerage has a “buy” rating and a target price of ₹3,340 per share. This indicates an upside of 11% from its previous closing price.
CarTrade Tech’s management, in its analyst meet, said it continues to focus on scaling its used-car ecosystem while expanding OLX beyond auto classifieds.
Used-car listings currently stand at over 3.4 million, with the management expecting it to reach 10 million over the medium term.
On OLX, elite buyer programme for businesses has been rolled out and has generated substantial engagement, according to the company.
Also, the company plans to start commerce for its non-auto used-products business, providing escrow and logistics services initially through third-party partners, which could add new monetization streams as volumes scale, Nomura said.
UBS
UBS has a “buy” rating on the stock and a target price of ₹4,000 per share on it, indicating a 33% upside from its previous closing price.
It said the Cartrade Tech management has a strong focus on expanding monetization levers in used-car value chain via AI-led products and multiple partnerships.
Earlier this week, the company announced its partnership with India’s leading car dealer Landmark Cars on a revenue share basis. This gives Cartrade Tech exposure to higher ASP used cars, it said.
The company also highlighted its enterprise tech platform ‘VAYA AI’, a data intelligence platform which can provide actionable insights to dealers and original equipment manufacturers (OEMs). This should help drive digitization of the used car buying journey, UBS said.
On existing launches, traction in the Elite Buyer programme of OLX continues, with adoption expected to scale meaningfully over the coming quarters, the brokerage said.
It added that with improving monetization across existing products and consistent focus on new product launches, it believes Cartrade Tech should continue its robust earnings growth trajectory.
Stock reaction
A total of 10 analysts have coverage on the CarTrade Tech stock. Of them, eight have “buy” recommendations while two have “sell” ratings.
Shares of CarTrade Tech are trading 0.5% lower on Friday at ₹2,988. The stock is down 5% in the last one month, but is holding on to gains of 6% so far on a year-to-date basis.
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