Shares of CarTrade Tech Ltd. rose nearly 8% on Monday, October 12, following UBS's bullish assessment of the company's prospects. According to reports from CNBC TV18 and The Economic Times, the brokerage reiterated a 'Buy' rating with a target price of ₹4,000, representing an upside potential of around 36% from Friday's closing price of ₹2,951. The stock has delivered a 25.9% return over the last 12 months and has turned positive on a year-to-date basis, now trading 12% higher. As per CNBC TV18, the stock has jumped to the day's high, now trading 7.7% higher at ₹3,178, significantly above UBS's target price of ₹4,000, which is substantially higher than the consensus target, pointing to a more bullish view on CarTrade's growth prospects. According to The Economic Times, UBS has maintained its Buy rating with a target price of ₹4,000, an upside of over 27% from the last close of ₹3,147.
UBS highlighted significant improvements in CarTrade's OLX India business since its acquisition, as reported by The Economic Times. The brokerage noted that OLX India previously struggled with cost inefficiencies, a broken inventory model, ghost buyers and unreliable sellers under its previous ownership. However, CarTrade's management has addressed most of these issues, improved user experience, and significantly strengthened profitability, with OLX's operating margin now exceeding 30%. The brokerage believes the market may be underestimating OLX's growth opportunity and the size of its addressable market. According to The Economic Times, discussions with investors suggest that the market has yet to fully recognise OLX's growth potential and total addressable market (TAM). In its latest research report, UBS argued that investors may be underestimating OLX India's monetisation potential following its acquisition by CarTrade Tech, with the platform having improved its user experience and profitability under new ownership.
UBS outlined ambitious growth projections for OLX's revenue potential, as reported by The Economic Times. The brokerage estimates that OLX could grow its revenue fivefold over five years in an optimistic scenario, with its base case projecting 3.8 times growth over the same period. OLX has multiple revenue drivers beyond its core business, including buyer and seller subscriptions, dealer partnerships, financing, escrow services, logistics and advertising. The brokerage believes successful execution of this opportunity could act as a major re-rating catalyst as the market recognizes the growth potential of the OLX business. According to The Economic Times, UBS expects OLX's emerging revenue levers, such as financing, subscriptions, and logistics to drive a 5x revenue expansion to ₹11.8 billion by FY31 against an FY26 base of ₹2.2 billion, rising 5x. This would be 43% above UBS's FY31 OLX revenue estimate, showing the upside potential for OLX. UBS estimates that paid auto and non-auto seller services could generate ₹2.9 billion and ₹3.6 billion respectively by FY31, while dealer partnerships could add ₹1.8 billion, used-car financing ₹2 billion, buyer subscriptions ₹810 million, and escrow and logistics ₹634 million.
According to CNBC TV18, 10 analysts have coverage on CarTrade Tech, with eight having a 'buy' rating and two having a 'sell' recommendation. The consensus estimate of price targets implies an upside potential of 8.9% from Friday's closing. The stock has jumped to the day's high, now trading 7.7% higher at ₹3,178, significantly above UBS's target price of ₹4,000, which is substantially higher than the consensus target, pointing to a more bullish view on CarTrade's growth prospects. As per The Economic Times, UBS believes successful execution of OLX's growth strategy could serve as a major re-rating catalyst for CarTrade, which remains one of its top mid-cap picks. For CarTrade Tech as a whole, UBS expects revenue to increase from ₹7,793 million in FY26 to ₹9,696 million in FY27 and ₹12,106 million in FY28.
According to latest market data, CarTrade Tech shares fell over 5% during the day's trade to hit an intraday low of ₹2,990. Despite the decline, the stock remained around 9% below its 52-week high of ₹3,291.35, recorded in November last year. It had touched a 52-week low of ₹1,522.85 in March 2026. The stock has declined 0.5% over the past month but gained 7% in three months and 68% in six months. It has risen 21% over the past year and delivered multibagger returns over five years, surging 124%. UBS drew a comparison with eBay, whose revenue nearly doubled over a decade despite broadly flat gross merchandise volume, with its take rate increasing from around 7.8% in 2015 to 13.9% in 2025, supported by payments, logistics, trust services and advertising.
