Shares of CarTrade Tech slipped over 3% on Wednesday, October 29, after surging nearly 16% in the previous session following its strong Q2 results. Brokerage firm Nomura maintained a neutral rating on the stock with a target price of ₹3,021, about 2% lower than the previous close of ₹3,083.
Nomura noted that the company’s growth momentum remains intact, with EBITDA exceeding expectations and valuations appearing fair. It revised its growth estimates for the consumer segment to 33% and 25% for FY26 and FY27, respectively, and for OLX to 18% and 25%. Nomura expects operating leverage to boost margins by 150–200 basis points to 40–44% for the consumer business and 29–33% for OLX, though this will be partly offset by a reduction in the SAMIL unit.
For Q2, CarTrade Tech’s revenue rose 25.4% year-on-year to ₹193.4 crore, while EBITDA nearly doubled to ₹63.6 crore, expanding margins to 33% from 21%. Net profit jumped to ₹60 crore from ₹28 crore. The stock traded 3.35% lower at ₹3,030.1 but remains up 100% year-to-date.