1. At a Glance
CarTrade’s stock just hit ₹2,115, up 127% in a year. FY25 revenue jumped 28% to ₹711 Cr, and PAT exploded 627% to ₹145 Cr. Q1 FY26 continued the party with PAT up 106%. The company has turned from a loss-making auctioneer to a tech-savvy profit machine.
2. Introduction
Picture a scrapyard where old cars get auctioned, and suddenly Tesla walks in with AI. That’s CarTrade in FY25. From acquiring OLX India to launching CarTrade Labs, the company finally found its nitrous boost. Two key stats to chew: 28% revenue growth and 6x profit surge in FY25. Investors are now revving engines.
3. Business Model (WTF Do They Even Do?)
CarTrade’s model is part‑classifieds, part‑auction, part‑magic:
- Consumer Platforms – CarWale, BikeWale, CarTrade.com bring buyers and sellers together.
- Remarketing/Auction – Shriram Automall handles B2B auctions for used vehicles.
- Classifieds (OLX India) – ads galore for cars, bikes, everything with wheels.
Revenue streams are transaction fees, ads, subscriptions, and value‑added services. Simple, scalable, and finally profitable.
4. Financials Overview
- FY25: Revenue ₹711 Cr (+28%), PAT ₹145 Cr (+627%), OPM 26%.
- Q4 FY25: Revenue ₹189 Cr (+18%), PAT ₹46 Cr (+85%).
- Q1 FY26: Revenue ₹173 Cr (+22%), PAT ₹47 Cr (+106%).
Verdict: Numbers flex, margins roar.
5. Valuation (Fair Value Range Only)
- P/E: EPS FY25 ₹32.8, at 40–50× gives FV ₹1,300–₹1,650.
- EV/EBITDA: EBITDA ₹172 Cr, at 20–25× gives FV ₹1,400–₹1,800.
Current price ₹2,115 is already above the fair range. Market is pricing in more miracles.
6. What-If Scenarios
| Scenario | Revenue FY26E | PAT FY26E | FV Range |
|---|---|---|---|
| Bullish | ₹1,050 Cr | ₹300 Cr | ₹2,000–₹2,500 |
| Base Case | ₹850 Cr | ₹200 Cr | ₹1,500–₹1,700 |
| Bearish | ₹700 Cr | ₹120 Cr | ₹1,000–₹1,200 |
7. What’s Cooking (SWOT Analysis)
Strengths: Asset-light, debt-light, strong brands, 150M+ users.
Weaknesses: ROE still ~6%, high working capital days.
Opportunities: AI push via CarTrade Labs, OLX monetisation.
Threats: Flipkart, Truebil, regulatory risks.
8. Balance Sheet
| FY25 (₹ Cr) | Amount | Snark |
|---|---|---|
| Assets | 2,705 | Big base after OLX integration |
| Cash & Inv. | 782 | Cash cushion for experiments |
| Borrowings | 131 | Not drowning, just coughing |
| Net Worth | 2,173 | Equity stable |
9. Cash Flow (FY23–FY25)
| Year | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | 48 | –17 | –33 | –4 |
| FY24 | 16 | +13 | –27 | +7 |
| FY25 | 171 | –138 | –27 | +7 |
Comment: Finally, cash flow looks like a salaried job—steady and growing.
10. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 6.3% |
| ROCE | 7.6% |
| P/E | 65× |
| PAT Margin | 20% |
| D/E | 0.06 |
Punchline: Margins sexy, returns stressy.
11. P&L Breakdown (3 Years)
| Year | Revenue | EBITDA% | PAT |
|---|---|---|---|
| FY23 | 490 Cr | 16% | 20 Cr |
| FY24 | 555 Cr | 18% | 82 Cr |
| FY25 | 711 Cr | 26% | 145 Cr |
Comment: Topline sprinting, bottomline finally running too.
12. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E |
|---|---|---|---|
| CarTrade Tech | 711 | 145 | 65× |
| FSN E‑Com (Nykaa) | 7,950 | 66 | 920× |
| RattanIndia Ent | 6,866 | –356 | 96× |
| Macfos | 255 | 18 | 42× |
Comment: The least drunk guest at an e‑retail party full of zombies.
13. EduInvesting Verdict™
CarTrade has shifted gears from burning cash to printing it. Debt is negligible, cash pile is fat, and growth engines are firing. But at 65× earnings, the stock is priced for perfection.
Verdict: “A smooth ride—for now. But keep your seatbelt on, potholes may come.”
Written by EduInvesting Team | 28 July 2025
Tags: CarTrade Tech, Auto Classifieds, OLX India Acquisition, EduInvesting Premium
