CarTrade Tech shares tank over 6% after Q2 results, but Nomura raises target price to Rs 3,377. Here’s why

Shares of CarTrade Tech plunged as much as 6.5% to a day’s low of Rs 2,304 on the BSE on Thursday after the company reported a net profit of Rs 66 crore, up 3% from Rs 64 crore posted in the same quarter last year.

The company’s revenue from operations came in at Rs 213 crore, marking a 10% increase from Rs 193 crore reported in the corresponding quarter of the previous financial year. EBITDA grew 20% to Rs 76 crore from Rs 64 crore in the year-ago period. OLX India maintained strong momentum, with a 26% YoY growth in revenue and a 36% YoY increase in EBITDA.

Buy, sell or hold the stock?

Global brokerage Nomura raised the target price to Rs 3,377 from Rs 3,340, implying an upside potential of 37% from current levels. Analysts expect growth in CarTrade Tech’s consumer business to improve in 2HFY27 and FY28, supported by easing demand pressures and an increase in new car launches. The brokerage noted that the business faced an adverse base effect in the second quarter.


Nomura sees significant growth potential in OLX over the medium term as its monetisation initiatives gain traction. Adoption of the Elite buyer offering reached around 3% by September and is expected to increase further.

The brokerage has lowered its revenue estimates by around 3%, mainly due to the consumer business. However, operating leverage is expected to drive margin expansion of 80-100 basis points, leaving its FY28 and FY29 earnings per share (EPS) estimates largely unchanged.

The stock is currently trading at around 27 times FY28F EV/EBITDA, adjusted for its 51% stake in unlisted SAMIL. Nomura considers the valuation attractive, maintaining its forecast of a 29% compound annual growth rate in EBITDA over FY26-29F.

The brokerage has retained its target EV/EBITDA multiples of 32 times for the Consumer/OLX business and 25 times for SAMIL, raising its target price marginally to Rs 3,377 from Rs 3,340. Stronger revenue growth at OLX could serve as a key catalyst for the stock.

What did CarTrade Tech management say?

CarTrade Tech attracted around 76 million average monthly unique visitors in Q2FY27, with organic traffic accounting for 96% of the total, reflecting its strong brand equity and content leadership, the management said.

The company now has a presence across more than 500 physical locations through Shriram Automall, CarWale abSure and Signature dealers, and OLX India franchisees. This network strengthens its pan-India reach and last-mile connectivity.

Its digital platforms, CarWale, BikeWale and OLX India, each attract more than 150 million annual unique visitors, highlighting the scale and engagement across its ecosystem.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.