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CarTrade Shares Surge 8 Percent As UBS Sets Target Price Of 4000 Rupees
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CNBC TV18•12-10-2026, 12:42
CarTrade Shares Surge 8 Percent As UBS Sets Target Price Of 4000 Rupees
- •Shares of CarTrade Tech Ltd. rose nearly 8 percent on Monday following a bullish note from UBS, which set a target price of ₹4,000.
- •The target price implies an upside potential of around 36 percent from the stock's previous closing price.
- •UBS maintains a Buy rating on the stock, emphasizing the strong growth potential and improving profitability of the OLX India business.
- •The brokerage highlighted that OLX has achieved an operating margin of over 30 percent after CarTrade addressed previous cost inefficiencies and operational issues.
- •UBS estimates that OLX could grow its revenue up to fivefold over five years through multiple revenue drivers such as subscriptions, financing, and advertising.
Key Questions Answered
UBS set a target price of ₹4,000 for CarTrade Tech shares, representing an upside potential of around 36% from the previous closing price of ₹2,951.
Since acquiring OLX India, CarTrade's management has resolved cost inefficiencies, fixed the inventory model, removed ghost buyers and unreliable sellers, improved user experience, and driven operating margins above 30%.
UBS highlights multiple revenue drivers for OLX, including buyer and seller subscriptions, dealer partnerships, financing, escrow services, logistics, and advertising, which could multiply revenue significantly over five years.
