🧾 At a Glance
CarTrade Tech is the OG “We’re not an auto company, we’re a platform” startup. With brands like CarWale, BikeWale, OLX Auto, and Shriram Automall under its belt, the company is basically the Flipkart of 10-year-old Swifts. But behind the slick UI and dealer CRM lies a business that took 9 years to turn a decent profit — and still gives out zero dividends, zero torque, and 360 days working capital.
1. 👋 Intro – This Platform is Definitely Not a Marketplace™
In an age where every startup is either an “ecosystem” or “disruptor,” CarTrade is the guy yelling, “I was here before it was cool.”
Founded before Swiggy learned how to spell IPO, CarTrade decided it would monetize car listings, auctions, inspections, and dealer software… just not cash flow.
Fast forward to FY25:
- 🔼 Stock up 123% YoY
- 📊 Net profit finally crossed ₹145 Cr
- 🔁 But still no dividend, and zero margin of safety
- 🔥 Working Capital Days: 360 — every rupee earned, sits stuck for a year
2. 🧳 Business Model – B2B, B2C, B2I Don’t Even Know Anymore
CarTrade is not one company. It’s eight disguised as one:
- CarWale + BikeWale: Customer-facing auto research platforms
- CarTradeExchange: B2B auction marketplace
- Shriram Automall: Offline car bazaar for everything from Maruti to Mahindra tractors
- OLX India: Now bundled into the circus
- Adroit Auto: Vehicle inspection (because apparently India needs due diligence for second-hand Altos)
- AutoBiz: CRM/ERP for dealers (read: SaaS money dreams)
What do they really sell?
Clicks, leads, commission, and mild confusion.
3. 💸 Financials – Finally Profitable, But For How Long?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹364 Cr | ₹490 Cr | ₹641 Cr |
| Net Profit | ₹40 Cr | ₹20 Cr | ₹145 Cr |
| OPM | 9% | 16% | 23% |
| EPS | ₹7.26 | ₹3.05 | ₹28.38 |
| ROE | 2.8% | 3.0% | 6.3% |
Let’s be honest:
They tripled revenue in 3 years, grew profit 3.6x in a year, and still have an ROE like a PSU bank stuck in litigation.
4. 🧾 Valuation – 65x P/E for a Lead Generator?
- Market Cap: ₹8,730 Cr
- P/E: 65x (Yes. For an auto listing company.)
- P/B: 3.93x
- Book Value: ₹468
- Dividend: 😂
EduFair Value™ = ₹1,200 – ₹1,500 (based on 25–30x normalized earnings of ₹45–₹50 per share, assuming FY26 growth)
Current price of ₹1,838 means investors are basically paying a down payment on a Hyundai Venue… to own a share in a digital car dealer.
5. 📈 What’s Cooking – OLX, Listings & Hope
- 🛒 OLX India acquisition: Expecting to tap 180M monthly users, but already burning ad budgets
- 📊 Elite Buyer Program launched: Aka “OLX Premium” for auto bros
- 🧾 Adroit Auto scaling: Plans to inspect 1 lakh+ vehicles/year — which might become their new moat if GST notices rain down
- 📈 Investor buzz: DII holding jumped from 4.9% to 15.3% in 1 year
Sounds exciting, but here’s the kicker: They’re still dependent on other income (₹70 Cr) to look impressive.
6. 🔍 Balance Sheet – Almost Debt-Free, Fully Cash-Stuck
| FY25 Snapshot |
|---|
| Borrowings: ₹131 Cr |
| Cash: ~₹170 Cr |
| Equity Capital: ₹47 Cr |
| Reserves: ₹2,173 Cr |
| Fixed Assets: ₹1,497 Cr |
| Total Assets: ₹2,705 Cr |
Clean balance sheet, yes. But those 360 Working Capital Days? That’s an accountant’s worst nightmare and a CFO’s sleepless week.
They’ve basically built an auto marketplace… where money is also parked like an unsold used Santro.
7. 💰 Cash Flow – Slightly Less Tragic Than Nykaa
| Year | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | ₹48 Cr | -₹17 Cr | -₹39 Cr | -₹7 Cr |
| FY24 | ₹16 Cr | ₹13 Cr | -₹33 Cr | -₹4 Cr |
| FY25 | ₹171 Cr | -₹138 Cr | -₹27 Cr | ₹7 Cr |
So FY25 shows a small comeback in cash from ops, but investing is still aggressive. It’s like finally becoming cash-positive, only to blow it all on expanding OLX’s backend.
8. 📉 Ratios – Slowly Exiting the ICU
| Metric | FY25 |
|---|---|
| ROE | 6.26% |
| ROCE | 7.6% |
| OPM | 23% |
| EPS | ₹28.38 |
| Debtor Days | 49 |
| Working Capital Days | 360 (Up from -11 🤯) |
OPM is sexy now. But ROE still looks like it’s recovering from long COVID.
9. ⚔️ Peer Comparison – E-Com’s Least Toxic Boyfriend
| Company | Revenue | PAT | ROE | P/E |
|---|---|---|---|---|
| FSN (Nykaa) | ₹7,949 Cr | ₹66 Cr | 5.2% | 939x |
| Brainbees (FirstCry) | ₹7,659 Cr | -₹161 Cr | -4% | NA |
| Swiggy | ₹15,226 Cr | -₹3,105 Cr | -25% | NA |
| CarTrade | ₹641 Cr | ₹145 Cr | 6.3% | 65x |
Among India’s tech IPOs, CarTrade is not the worst. But in a room full of cash burners, even a flickering candle feels like the sun.
10. 🤹 Misc – Shareholding Churn & DII Party
| Mar 2024 | Mar 2025 |
|---|---|
| FIIs | 69.7% → 60.9% 🔻 |
| DIIs | 4.9% → 15.4% 🔼 |
| Public | 25.3% → 23.7% |
FIIs are quietly exiting. DIIs have walked in with flex money. Retail? Still clinging on for dear ₹1,900+.
11. 🧑⚖️ EduInvesting Verdict™
CarTrade isn’t a scam. It’s just an old startup with decent tech, improving numbers, and a price tag that still thinks it’s 2021.
✅ Finally profitable
✅ Lean, diversified ops
✅ Zero debt, good margin growth
🚫 Still trading at ~65x
🚫 Heavy dependency on Other Income
🚫 Working Capital locked up like Fort Knox
This isn’t a stock. It’s a car dealership with an MBA.
🎯 Fair Value Range: ₹1,200 – ₹1,500
(30x–35x earnings, assuming they don’t lose momentum or working capital)
✍️ Written by Prashant | 📅 10 July 2025
Tags: CarTrade Tech, CarWale, Used Car Stocks, Auto Marketplace India, OLX India Acquisition, IPO Bubble, Tech Stock Analysis, FY25 Results, DII vs FII, Working Capital Issues
