Synopsis :- Small-cap auto platform provider shares fell by 5 percent today after it decided not to proceed with the planned acquisition.
A Small-cap company that is a multi-channel auto platform provider company with coverage and presence across vehicle types and Value Added Services, is in the spotlight after it decided not to proceed with the planned acquisition.
With the market capitalization of Rs. 14,469.08 crore, the shares of Cartrade Tech Limited are trading at Rs. 3,025, down by 4.75 percent from its previous day’s close price of Rs. 3,175.80. It has touched an intraday low of Rs. 3,004.30 in today’s trading session, implying a downside of 5.4 percent from previous close price.
What’s the News?
CarTrade Technologies shares fell over 5 percent after the company and Girnar Software mutually decided not to proceed with the planned acquisition of CarDekho and BikeDekho. CarTrade said it will focus on strengthening its existing platforms, including CarWale, BikeWale, OLX India and Shriram Automall.
Earlier reports had indicated that CarTrade was in advanced talks for a cash and stock deal worth over 1.2 billion dollars that could have created India’s largest digital auto marketplace by combining the strengths of both companies. The deal was expected to combine CarTrade’s strength in dealer auctions, B2B remarketing and vehicle financing with CarDekho’s large consumer listings, insurance and digital retail businesses.
About the Company
CarTrade Tech Limited, founded in 2000 and based in Navi Mumbai, operates a multi-channel online automotive platform in India and internationally. The company provides end-to-end services for new and used vehicles, including buying, selling, marketing, valuation, and financing. It offers solutions for OEMs and dealers, such as digital marketing insights, car reviews, on-road pricing, dealer management systems, and auto finance tools.
CarTrade also conducts online and offline vehicle auctions covering cars, bikes, trucks, farm and construction equipment, and provides inspection and valuation services for banks, insurance companies, and fleet owners. Additionally, through its OLX India platform, the company facilitates buying and selling of cars, housing, jobs, and household goods. Its services are offered under multiple brands, including CarWale, BikeWale, Shriram Automall, DriveASmile, and CarTrade Ventures, among others.
A return on equity (ROE) of about 6.24 percent, a return on capital employed (ROCE) of about 7.59 percent and debt to equity ratio of 0.06 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 76.9x higher as compared to its industry P/E 43.1x.
The company reported Q2 FY26 revenue of Rs. 193 crore, up 25.3 percent YoY from Rs. 154 crore in Q2 FY25 and 11.6 percent QoQ from Rs. 173 crore in Q1 FY26. The company’s net profit rose sharply to Rs. 64 crore, a 106 percent YoY increase from Rs. 31 crore and a 36.2 percent QoQ increase from Rs. 47 crore in the previous quarter.
Written by Akshay Sanghavi
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