Buy CarTrade Tech, target price Rs 710 : JM Financial

JM Financial has buy call on CarTrade Tech Ltd. with a target price of Rs 710. The current market price of CarTrade Tech is Rs 507.5.

CarTrade Tech, incorporated in the year 2000, is a Small Cap company (having a market cap of Rs 2379.71 Crore) operating in Services sector.

CarTrade Tech key Products/Revenue Segments include Other Services, Used Cars and Income From Advertisement for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 106.91 Crore, down -8.30 % from last quarter Total Income of Rs 116.60 Crore and up 15.24 % from last year same quarter Total Income of Rs 92.77 Crore. Company has reported net profit after tax of Rs 13.51 Crore in latest quarter.

Investment Rationale
Given tougher unit economics in C2B business, the brokerage is not ascribing significant value to that business but still find it to be a steal deal basis just the classifieds platform, which has the potential to add >8% to its published TP for CarTrade of INR 710.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Jun-2023, while FIIs owned 69.69 per cent, DIIs 4.61 per cent.