Multibagger alert: This new-age tech stock jumps 100% in 7 months, skyrockets 400% in 2 years. Do you own it?

Multibagger stock: CarTrade Tech, one of India’s largest online classifieds and auto auction platforms, has been making remarkable strides on Dalal Street in recent months, with its shares continuing to surge, defying the trend of broader market weakness.

The stock has ended six out of the last seven months in positive territory, resulting in a stellar 100% gain, spiking from ₹848 to ₹1700. Among these, February stood out as the best-performing month with a 25.42% return, followed by an 11.15% rally in January.

So far in the current month, it is up 10%, and last Friday, the stock touched a fresh all-time high of ₹1,889 per share, edging closer to the ₹2,000 mark.

The company, which debuted on Dalal Street in August 2021, faced a challenging 18-month period, hitting new lows. However, a strong recovery began in April 2023, as improving financials bolstered investor confidence, shifting sentiment positively and leading to a 400% gain from its all-time low.

Looking at the December quarter numbers, the company reported stellar performance, with its revenue growing by 27% YoY, driven by 38% YoY growth in the standalone classifieds business, 27% YoY growth in SAMIL, and incremental revenues from the OLX acquisition, which rose 4.5% QoQ. Monthly average unique visitors (for CarTrade, CarWale, and BikeWale) grew 28% YoY to 49 million, with 92% of traffic being organic.

According to analysts, healthy traffic growth has been achieved without significant marketing spending, which is seen as a positive sign. SAMIL’s vehicle listings grew 22% YoY to 365K, while vehicles sold increased 29% YoY to 59K, indicating some recovery in the market.

Profit after tax for the quarter stood at ₹45.53 crore, compared to a loss of ₹23.55 crore in the same period last year.

About the Company

CarTrade Tech is a multi-channel auto platform with a presence across all vehicle types and value-added services. It operates under several brands, including CarWale, CarTrade, OLX India, Shriram Automall, BikeWale, CarTrade Exchange, and Adroit Auto. These platforms enable new and used automobile customers, vehicle dealerships, vehicle OEMs, and other businesses to buy and sell vehicles.

According to the company, each of its three platforms—CarWale, BikeWale, and OLX India—has surpassed 150 million yearly unique visitors, with more than 90% of the traffic being generated organically. Based on Q3 FY25 annualized numbers, the remarketing business has achieved 1.5 million listings for auctions. The company now operates in over 450 physical locations, at the end of December.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.