Initiation of Coverage CarTrade Tech: APAC Focus: Accelerating earnings

Research evidence excerpt

Initiation of Coverage CarTrade Tech: APAC Focus: Accelerating earnings

Global Research

13 July 2026ab

Initiation of Coverage

EquitiesCarTrade Tech

APAC Focus: Accelerating earningsPlease India

Internet Services

12-month rating Buy

Prior : No Rating

12m price target Rs4,000.00

Prior :

Price (10 Jul 2026) Rs2,808.95

RIC: CART.BO BBG: CARTRADE IB

Trading data and key metrics

52-wk range Rs3,268.00-1,623.40

Market cap. Rs134b/US$1.41b

Shares o/s 47.8m (ORD)

Free float 87%

Avg. daily volume ('000) 1,138

Avg. daily value (m) Rs2,479.3

Common s/h equity (03/27E) Rs28.1b

P/BV (03/27E) 4.7xCarTrade'sasset light model offers significant operating leverage. We expect Net debt to EBITDA (03/27E) 0.3x

margins to expand from 33% in FY26 (9% in FY23) to 47% by FY30E vs 50-60%

EPS (UBS, diluted) (Rs)

for global peers. We expect this to be driven by significant top-line growth, with

From To % ch Cons.

current revenue across its platforms representing only 3-4% of TAM (see Figure 5Largeadresablemarketwithlowmarketshareimplyingsubstantialupside 03/27E - 63.43 - 57.79

and Figure 13SignificantupsidetoCarTrade'spenetration). In particular, our analysis shows significant growth potential in OLX, 03/28E - 84.46 - 72.50

its dominant used C2C platform. In our view, this growth potential is 03/29E - 103.51 - 86.27

underappreciated. Overall, we see scope for 15-20% upside in consensus earnings

for FY27–29E. We initiate coverage with a Buy rating and price target of Rs4,000. Shaleen Kumar

Analyst

shaleen.kumar@ubs.com

Scaling network effects, hidden value +91-22-6155 6065

CarTrade is a dominant digital auto marketplace with powerful network effects. The

Angad Saluja

strength of its platforms is reflected in traffic being 95% organic, despite spending only Associate Analyst