CarTrade Tech share price target: CarTrade Tech could be entering a new phase of growth as its OLX India business expands beyond seller services into financing, dealer partnerships, subscriptions, logistics and advertising, according to UBS. The brokerage has maintained its ‘Buy’ rating on the stock and a price target of ₹4,000, implying an upside of around 36%.
In a recent research report, UBS argued that investors may be underestimating OLX India's monetisation potential following its acquisition by CarTrade Tech. The brokerage said the platform had improved its user experience and profitability under its new ownership, while several opportunities to generate revenue from buyers and transactions remained relatively underdeveloped.
“We believe the market is missing out on its growth potential and overall TAM, with multiple revenue drivers, such as buyer and seller subscriptions, dealer partnerships, financing, escrow, logistics and advertising," it added.
UBS sees OLX India as a potential five-year growth story. Its upside scenario suggests the platform could increase revenue nearly fivefold by FY31, while its base case points to growth of 3.8 times. Successful execution could also act as a re-rating catalyst for CarTrade Tech, the brokerage said.
"We believe successful execution of OLX could be a major re-rating catalyst for CarTrade, one of our top mid-cap picks," it highlghted.