Cartrade Tech shares decline 3% — Nomura remains 'neutral' on stock

Shares of Cartrade Tech were down over 3% on Wednesday, October 29, after gaining nearly 16% in the previous session post its second quarter results.

Brokerage firm Nomura has a "neutral" call on the stock with a target price of ₹3,021 per share, which is 2% lower than its previous closing price of ₹3,083 apiece.

Nomura said the company's healthy growth momentum is on track. Its second quarter earnings before interest, tax, depreciation and amortisation (EBITDA) was ahead of estimates, and valuations are in the fair value zone.

Nomura said it has revised its growth by 3% for consumer to 33% and 25% for FY26 and FY27, respectively and for OLX to 18% and 25%, respectively.

Cartrade Tech's strong operating leverage lifts its margin by 150 to 200 basis points to 40% and 44% for consumer and 29% and 33% for OLX, Nomura said.

It said it is partly offset by a cut in the SAMIL business.

Cartrade Tech's revenue in the second quarter increased by 25.4% to ₹193.4 crore from ₹154.2 crore in the previous year.

Its EBITDA nearly doubled to ₹63.6 crore from ₹32.6 crore in the year-ago period, while its margins expanded to 33% from 21% last year.

Its net profit more than doubled to ₹60 crore from ₹28 crore in the previous year.

Cartrade Tech shares were down 3.35% at ₹3,030.1 apiece in early trade on Wednesday. The stock has gained 21.2% in the past month, 74.2% in the last six months and 100% this year, so far.

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