Shares of Cartrade Tech, a multi-channel auto platform provider, zoomed nearly 29.5% in the last six trading sessions due to a sudden spike in volumes. During this period, the shares have appreciated from ₹417 apiece to ₹539.35. This remarkable rise has propelled the stock to trade near its highest level in four months.
In response to the sudden spike in trading volumes, the BSE asked for a clarification from the company on June 05. The company on the following day replied that it has no information or announcement to disclose that could impact the trading activity or volume behaviour.
Despite this recent upswing, the stock is still trading significantly below its IPO price, currently standing at a 66.66% discount to the issue price of ₹1,618 per share.
Following its listing on August 20, 2021, the stock experienced a significant decline for seven consecutive months until February 2022, resulting in a steep drop of 63.70%. Out of the last 23 months, the stock has had positive gains in only five. Notably, it has never traded above its IPO since its market debut.
CarTrade Tech operates an automotive digital ecosystem that connects automobile customers with automotive manufacturers ("OEMs"), dealers, banks, insurance companies, and other stakeholders.
The company owns and operates under several brands such as CarTrade, CarWale, and AutoBiz. Through these platforms, the company enables new and used automobile customers, vehicle dealerships, OEMs, and other businesses to buy and sell their vehicles simply and efficiently.
During the March-ending quarter, the company recorded a net profit of ₹18 crore, a significant improvement compared to a net loss of ₹21 crore in the same period last year. Its revenue from operations for the quarter reached ₹96 crore, slightly higher than the ₹93 crore generated in Q4 FY22.
Looking at the overall fiscal year 2022–23, the company achieved a net profit of ₹40 crore, marking a substantial turnaround from the net loss of ₹121 crore in the previous fiscal year. The total revenue for FY23 stood at ₹364 crore, an increase from ₹313 crore.
Meanwhile, foreign institutional investors (FIIs) reduced their stake in the company to 70% in the March quarter, down from 72.5% in Q3 FY23. Similarly, domestic institutional investors (DIIs) also trimmed their stake to 4.5% in Q4 FY23 from 5.4% in Q3 FY23.
06 analysts polled by MintGenie on average have a 'strong buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.