Brokerage firm JM Financial downgraded the online market place for used cars platform to “sell” from its earlier rating of “hold”, but raised its price target to ₹2,350 from ₹1,900 earlier.
The revised price target from JM Financial implies a potential downside of 14% from Tuesday’s closing levels.JM Financial said that Cartrade currently trades at a financial year 2027 EBITDA multiple of 43 times, which is “too rich” for a company that still generates the entirety of its revenue from B2B clients.
“While the company does operates B2C platforms, that does not insulate it from the cyclical nature of B2B spends,” JM Financial wrote in its note, adding that while the OLX recovery is positive, it does not trigger any change in their forecast, as it was on expected lines.Additionally, consumer surveys are also indicating a significant rise in generative AI tools such as ChatGPT and Perplexity at the cost of Google Search, thereby creating a substantial risk for the company, JM Financial said.
Cartrade Tech on Wednesday said that the rationalisation of GST rates by the council on automobiles, can significantly enhance affordability, uplift consumer sentiment, and accelerate transaction volumes across both new and used categories.
As a result, the company’s consumer platforms, CarWale and BikeWale have witnessed a surge of over 25% in consumer traffic.
“The GST reduction is a game-changer for India’s automobile industry. By reducing ownership costs for consumers and increasing velocity for dealers, it has set off a new wave of demand,” Cartrade’s Consumer Group CEO Banwari Lal Sharma said.
Eight analysts have coverage on Cartrade Tech, four of them have a “buy” rating, one has a “hold” and three have a “sell” rating.
Shares of Cartrade Tech are now trading 17% lower at ₹2,271.9. From its March 2023 low to the September 9 high, the stock had surged 8x, thereby crossing its IPO price of ₹1,618 in the process.
First Published: Sept 10, 2025 10:49 AM IS
