CarTrade Tech Shares Soar 8% After Kotak Recommends ‘Buy’; Check the Details

Synopsis: CarTrade Tech shares jumped 8% after Kotak Institutional Equities upgraded the stock to ‘Buy’ and raised its target price to Rs. 2,300. The brokerage cited OLX’s improving profitability, strong dealer network, and limited AI disruption risks as key positives.

The shares of this company are in a multi-channel auto platform provider with coverage and presence across vehicle types and Value Added Services are in the spotlight after it rose by 8 percent in today’s session following Kotak raising the company’s target.  

With a market capitalisation of Rs. 9,090 cr, the shares of CarTrade Tech Ltd were trading at Rs. 1897.50 per share, surging 8% in today’s session, making a high of Rs. 1,931, up from its previous close of Rs. 1,795.20 per share. The stock was down by 45% from its 52-week high of Rs. 3,291.35 to the previous close. 

What’s the News 

Brokerage firm Kotak Institutional Equities has upgraded its rating on Cartrade Tech Ltd. from “sell” to “buy.” Alongside this upgrade, the firm significantly raised its price target by 28%, moving it to Rs. 2,300 per share from the previous target of Rs. 1,800. 

The stock has faced notable pressure recently, declining 34% so far this year and falling 45% from its all-time high. This sharp correction was largely driven by market concerns over potential disruptions from emerging AI models. However, Kotak noted that CarTrade’s deeply entrenched dealer database and its specialized value-added offerings are expected to effectively limit the negative impacts of AI disruption.

OLX Valuation Drives Optimism

The core catalyst behind Kotak’s upgraded stance is a higher valuation for OLX. The brokerage foresees steady gross merchandise value (GMV) growth, alongside improving monetization and profit margins for the platform. Consequently, Kotak has raised its earnings per share (EPS) estimates for CarTrade Tech by 1% to 5% across the financial years 2027–2029 to factor in this heightened profitability.

About the company 

CarTrade Tech Ltd is an Indian automotive technology company that operates online platforms for buying, selling, financing, and valuing vehicles. The company owns and operates well-known automotive platforms such as CarTrade, CarWale, BikeWale, and OLX India Autos. It serves consumers, dealers, OEMs, and financial institutions through vehicle listings, auctions, inspections, and data-driven automotive solutions.

It delivered a strong financial performance in Q4FY26. Revenue from operations increased by 20% YoY to Rs. 203 crore, compared to Rs. 170 crore in Q4FY25, reflecting healthy business growth across its automotive platforms. 

EBITDA rose sharply by 55% YoY to Rs. 71.6 crore from Rs. 46.2 crore, indicating significant improvement in operating efficiency and profitability. Net profit grew by 54% YoY to Rs. 70.8 crore versus Rs. 46.1 crore in the corresponding quarter last year. Earnings Per Share (EPS) increased by 53% YoY to Rs. 13.49 from Rs. 8.82.

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