CarTrade Tech stunned investors with a blockbuster Q2 FY24 performance, as its net profit more than doubled year-on-year, fueling an 18% stock surge to a record high. The Mumbai-based auto marketplace’s stellar earnings highlight its dominance in India’s booming used car sector and digital auto ecosystem.
CarTrade Q2 FY24 Highlights: Record Profit & Revenue Growth
- Net profit: ₹42.5 crore (up 125% YoY from ₹18.9 crore)
- Revenue: ₹123 crore (21% increase YoY)
- EBITDA margin: 40% (vs. 32% in Q2 FY23)
The company credited higher transaction volumes, cost optimization, and expansion in used/new car segments for the growth.
4 Key Growth Drivers
- Used Car Boom: Capitalized on India’s thriving pre-owned vehicle market.
- Diversified Revenue Streams: Expanded into financing, insurance, and inspections.
- AI & Digital Tools: Enhanced pricing algorithms and virtual inspections.
- OLX Acquisition: Strengthened market share after buying OLX India’s auto business.
Stock Market Reaction & Analyst Outlook
CarTrade shares skyrocketed 18% to ₹753.50 on the BSE, hitting an all-time high. Analysts upgraded ratings, citing:
– “Strong monetization potential in auto-tech” (Elara Capital)
– “Leadership in used cars with improving margins” (Market Expert)
Challenges & Future Plans
While competition from Spinny and Cars24 persists, CEO Vinay Sanghi emphasized scaling CarTrade’s ecosystem and innovation. The festive season could further boost performance.
Bottom Line
With robust fundamentals and a 90% rally from its 52-week low, CarTrade Tech is emerging as a top auto-tech stock. Investors should monitor its festive-season performance for sustained momentum.
Disclaimer: Not investment advice. Consult a financial expert before trading.
