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CarTrade at 28-month high; rallies 30% in 1-week as Goldman Sachs ups stake

Goldman Sachs Asset Management B.V. said their holdings have increased to 2.42 million shares, representing 5.16 per cent of the capital of CarTrade as at May 3, 2024.


SI Reporter Mumbai

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Shares of CarTrade Tech (CarTrade) hit a 28-month high at Rs 939, as they rallied 11 per cent on the BSE in Wednesday’s intra-day trade in an otherwise weak market. In past one week, CarTrade stock of e-commerce company has surged 30 per cent after the company said Goldman Sachs acquired an additional 106,116 equity shares of the company from open market. The stock was trading at its highest level since December 2021.

“Our holdings have increased to 2.42 million shares, representing 5.16 per cent of the capital of CarTrade as at May 3, 2024. As such now a substantial shareholder of the company,” Goldman Sachs Asset Management B.V. said in exchange filing. CLICK HERE FOR DETAILS

Prior to acquisition, Goldman Sachs Asset Management B.V held 4.93 per cent stake through its various schemes in CarTrade, the company said.

At 10:51 am; CarTrade was trading 10 per cent higher at Rs 934.65, as compared to 0.51 per cent decline in the S&P BSE Sensex. The stock has bounced back 53 per cent from its March low of Rs 612.65. In past one year, the stock price of the company more-than-doubled or zoomed 121 per cent from Rs 425.05. It had hit a record low of Rs 341.05 on March 29, 2023.

Despite the sharp run-up in past one year, currently, CarTrade is 43 per cent below its issue price of Rs 1,618 per share. The company made its stock market debut on August 20, 2021.

CarTrade is a multi-channel auto platform with its presence across all vehicle types and value-added services. The platform got 70 million average monthly unique visitors in Q4FY24 and has 1.2 million listings for auction in FY24. The platform operates under several brands: CarWale, CarTrade, Olx India, Shriram Automall, BikeWale, CarTrade Exchange and Adroit Auto. These platforms enable new and used automobile customers, vehicle dealerships, vehicle OEMs, and other businesses to buy and sell vehicles in a simple and efficient manner.

In the March quarter (Q4FY24), CarTrade recorded highest-ever quarterly revenue of Rs 161 crore, up 38 per cent year-on-year (YoY) and a quarterly profit after tax of Rs 25 crore, with a strong 43 per cent growth YoY.

The management said the acquisition of OLX India during this period has not only strengthened leadership position of the company and also paved the way for substantial synergies among OLX India, CarWale, BikeWale, and Shriram Automall.

Leveraging leadership expertise, the management said the company is poised to capitalise on numerous opportunities to innovate and cater to its unique monthly visitor base of 70 million across various platforms. Looking ahead, the company’s focus remains steadfast on driving sustainable and profitable growth in the forthcoming years, the management said.

“Management did reiterate that the business has normalised cost structure in Q3FY24 and would see robust margin expansion going forward. With three deeply moated and highly profitable business segments, we find incredibly favourable risk-reward at CMP,” analysts at JM Financial Institutional Securities said. The brokerage firm reiterates ‘BUY’ rating on the stock with March 2025 target price of Rs 1,020, as analysts believe the company to be perfectly positioned to benefit from rising digitalisation in Indian auto.

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First Published: May 08 2024 | 11:09 AM IST

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