CarTrade Shares Rally 13% To Hit Fresh 52-Week High At INR 1,336.40

Shares of CarTrade rallied more than 13% to reach a fresh 52-week high at INR 1,336.40 apiece on the BSE in the early trading hours on Tuesday (November 19).

However, the stock shed some of the gains later in the day and ended the trading session 9.7% higher at INR 1,290.

The upward swing in the stock price coincided with a rally in the broader Indian equities market. While the 30-share BSE Sensex rose 1.4% to reach an intraday peak of 78,451.65, Nifty50 rose nearly 1.2% to reach the day’s high at 23,780.65.

Shares of CarTrade have been on an upward curve since the company reported a 509% jump in its consolidated net profit to INR 30.72 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 5.04 Cr in the same period last year. Operating revenue zoomed over 28% to INR 154.20 Cr during the quarter under review from INR 120 Cr in Q2 FY24.

However, the stock came under pressure over the last few sessions amid the decline in the broader market.

Founded in 2009 by Vinay Sanghi and Rajan Mehra, CarTrade facilitates the sale of both new and used vehicles. It operates brands like OLX India, CarWale, BikeWale, CarTradeExchange, Shriram Automall, Adroit Auto, and Autobiz. It also provides technology solutions to OEMs and dealers. 

CarTrade competes with major players like CarDekho, Droom, and CARS24 in India’s rapidly growing online automotive classifieds market.

Earlier this year, Goldman Sachs Asset Management raised its stake in CarTrade to 7.19% from 5.15% at the end of the June quarter.

The development came on the heels of private equity firm Warburg Pincus offloading its entire 8.64% stake in the auto marketplace for INR 375.1 Cr.

In August, CarTrade expanded the size of its employee stock option plan (ESOP) by allocating an additional 50,000 shares to its employees.