CarTrade Shares Rally 6.31% To Touch Fresh 52-Week High

SUMMARY

However, the stock shed all the gains for the day to trade 0.20% below at INR 1612.70 at 11:50 AM

The stock has far surpassed its sectoral PE ratio, recording a PE of 158.06 against its sectoral PE of 22.96

The upward trend in CarTrade’s shares comes despite the government in the 55th GST council meeting announcing an 18% tax on car resell

Shares of CarTrade rallied almost 6.31% during the intraday trading today (December 26) to hit a fresh 52-week high at INR 1,718.00 apiece on the BSE.

However, the stock shed all the gains for the day to trade 0.20% below at INR 1612.70 at 11:50 AM.

At the same time, the company’s market capitalisation stood at INR 7,624.50 Cr while its trade volume stood at 5.1 Lakh.

The stock has surged around 123% on a year-to-date basis. Moreover, it is trading above its listing price of INR 1,600 on the BSE. While 6 out of the last 10 trading sessions of the company have ended in the green, the stock has given a return of 24.5% in a month.

The stock has far surpassed its sectoral PE ratio, recording a PE of 158.06 against its sectoral PE of 22.96.

Today’s spike in stock came in congruence with the broader benchmark indices like BSE and NSE hovering in the green with marginal increases of 0.13% and 0.17% at 78,568.47 and 23,769.15 respectively.

Not to mention, US indices such as the S&P 500 and Dow Jones Industrial Average also remained steady post-Christmas, reflecting investor optimism associated with the Santa Rally.

The upward trend in CarTrade’s shares comes despite the government in the 55th GST council meeting announcing an 18% tax on car resell. This 18% is levied on the difference between the purchase price and the selling price of the car.

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.

Among other recent developments, the company allotted an additional 65,750 equity shares under its existing employee stock option plans (ESOP).

On the financial front, the auto marketplace recorded a 509% year-on-year jump in its consolidated net profit to INR 30.72 Cr in the September quarter (Q2) of the financial year 2024-25 (FY25) from INR 5.04 Cr in the previous fiscal year.

Meanwhile, its revenue from operations rose 28.4% to INR 154.20 Cr in the second quarter, from INR 120 Cr, a year ago.