CarTrade share price soars 11% after strong Q4 results. What are brokerages saying?

Further, the multi-channel auto platform claimed to receive the highest ever for Q4FY24, at 7 crore and more than 92% of which was organic.

Here’s how are viewing the results:

Nomura

expects a healthy 20% revenue CAGR (FY24-26F) to continue in the consumer/OLX businesses as OEMs spend more on higher new car inventory and stronger value proposition with OLX in the used car segment. Better execution in OLX may drive further upside.

Nomura has maintained its ‘buy’ rating on the stock with a target of Rs 982.

JM Financial

While new auto segment growth (c.15%) missed JM’s expectations marginally, the remarketing segment surprised positively with 14% QoQ growth. CarTrade’s existing business delivered strong margin expansion with an adjusted of 23.9% , primarily driven by the new auto segment. With three deeply moated and highly profitable business segments, the brokerage finds an incredibly favorable risk reward at the current market price.

The brokerage has maintained a ‘buy’ rating on the stock but has increased the to Rs 1,020.

Kotak Institutional Equities

Kotak incorporates OLX’s financials driving a 33-34% FY2025-26E EPS upgrade as the company stated that costs pertaining to OLX’s C2B business have already been written off. The brokerage firm likes the for its user base, though they state that Cartrade needs to rapidly scale monetization. FY2025-26E EPS estimates have been increased 33-34% on the incorporation of OLX in financials.

KIE retained its ‘sell’ rating on the stock while setting a target price of Rs 530.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)