Retail investors’ favorite small-cap stocks have struggled to find momentum in recent months, weighed down by weaker-than-expected June-quarter performance, which failed to justify lofty valuations, causing many to incur sharp losses.
However, a few select stocks have bucked the trend. CarTrade Tech, for instance, has maintained its unwavering rally, hitting record highs month after month, providing significant value creation for shareholders.
Closing all of the last three months in green, the shares have zoomed 54%, and the rally also led to a fresh record high of ₹2,517. Since March 2024, it has surged by 300%, and looking even further back, it has grown from ₹484 in August 2023 to the current trading price of ₹1,582, marking a 400% gain.
The shares, which debuted on Dalal Street in August 2021, faced a challenging 18-month period, hitting new lows. However, a smart turnaround in April 2023, as improving financials bolstered investor confidence, shifted sentiment positively, turning the stock into a stellar growth performer without any large pullbacks, even during heightened market volatility.
Another record performance in June quarter
The company has been reporting growth in both revenue and net profit over the last six quarters, with the June quarter posting another robust performance, reporting its highest-ever quarterly revenue of ₹198.50 crore, representing a 27% year-on-year (YoY) growth, and Profit After Tax (PAT) of ₹47.06 crore, up 106% YoY.
All three segments posted strong performance, with the Consumer Group continuing to scale profitably, delivering 32% YoY revenue growth and 79% YoY PAT growth. The Remarketing Business posted a 36% YoY revenue growth and 258% YoY PAT growth. OLX India maintained momentum with 71% YoY growth in profit, benefiting from operating leverage and integration synergies.
During the reporting quarter, the company attracted 75 million average monthly unique visitors, with 95% of the traffic being organic.
The company remains focused on driving innovation and has recently intensified its AI-led initiatives to enhance customer experience, improve operational efficiency, and enable smarter, data-driven decision-making across platforms. Continued investments in technology, data science, and automation will play a pivotal role as the company scales further and unlocks new value across all its digital platforms.
About the company
CarTrade Tech Limited is India’s largest digital marketplace ecosystem, operating multiple platforms including CarWale, BikeWale, CarTrade, OLX India, Shriram Automall, CarTrade Exchange, and Adroit Auto.
CarTrade Tech now has a presence in 500+ physical locations, including Shriram Automall, CarWale abSure & Signature dealers, and OLX India franchisees, strengthening its pan-India network and enabling last-mile connectivity.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
