Shares of CarTrade Tech, one of India’s largest online auto platforms, jumped as much as 7 percent on January 25, reacting to the company's bumper sales in the quarter ended December.
At 2:52 pm, shares of the company were trading at Rs 480.35 a piece, up 1.51 percent, on the BSE.
CarTrade recorded the highest-ever quarterly revenue at Rs 115.86 crore in the third quarter of FY23.
In the previous quarter, the company’s sales came in at Rs 102.49 crore whereas a year ago, it logged a revenue of Rs 102.32 crore.
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Further, it clocked its highest-ever quarterly adjusted EBITDA (Earnings Before Interest Tax Depreciation and Amortization) at Rs 36.60 crore in the reporting quarter.
Adjusted net profit stood at Rs 14.05 crore, up from Rs 5.58 crore in the previous quarter and a loss of Rs 18.49 crore in the corresponding period last year.
The company said CarTrade Tech received 35 million average monthly unique visitors for the third quarter of FY23, of which 88 percent was organic.
The platform operates under several brands--CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz. 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.
Vinay Sanghi, Chairman, and Founder, CarTrade Tech, said, “Our profitable business model and surplus liquidity of over Rs 1,000 crore will allow us to invest in widening our offerings towards providing a seamless Phygital experience to all our users."
With the continued growth in passenger vehicle volumes and rising digital advertising spends, formalisation of the used car industry and superior returns versus all its peers, Asian Markets Securities sees a long growth trajectory for the company. It expects CarTrade Tech to deliver a 25 percent revenue CAGR (compounded annual growth rate over FY22-25).
With market leadership and lack of competitive peers, the brokerage firm has valued CarTrade Tech at a P/E of 28 times FY25 EPS (earnings per share) to arrive at a target price of Rs 700. Asian Markets Securities has retained its ‘buy’ call on the company’s stock.