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HomeMarket NewsStocks To Buy: UBS projects this auto-sector proxy to jump 42% on strong growth prospects
UBS believes CarTrade is well positioned to deliver strong earnings growth, supported by its asset-light business model, which offers significant operating leverage as revenue scales.
By Meghna Sen July 13, 2026, 7:32:26 AM IST (Published)
2 Min Read
Shares of CarTrade Tech Ltd. will be in focus on Monday, July 13, after global brokerage UBS initiated coverage on the stock with a 'Buy' rating and a target price of ₹4,000 per share.
The target implies a potential upside of around 42% from Friday's closing price of ₹2,809.40.
UBS believes CarTrade is well positioned to deliver strong earnings growth, supported by its asset-light business model, which offers significant operating leverage as revenue scales.
The brokerage expects the company's EBITDA margin to expand to 47% by FY30, from 33% in FY26 and 9% in FY23, bringing it closer to global peers that operate with margins of 50%-60%.
According to UBS, the margin expansion is likely to be driven by robust revenue growth, with CarTrade currently generating revenue from only 3%-4% of its total addressable market (TAM), leaving substantial headroom for further monetisation.
The brokerage also highlighted the growth potential of OLX, CarTrade's leading consumer-to-consumer (C2C) used vehicle marketplace, which it believes remains underpenetrated despite its dominant market position.
UBS described CarTrade as a leading digital automotive marketplace with strong network effects across its platforms. Around 95% of the company's traffic is organic, even though it spends just 4% of revenue on marketing, significantly lower than many global peers and other online platforms in India.
The brokerage added that CarTrade has built an ecosystem that spans the entire vehicle purchase journey, from discovery to transaction, allowing it to capture value across multiple touchpoints.
It also believes the company has yet to fully monetise several high-potential revenue streams, including vehicle financing referrals and transaction fees, which could support future earnings growth.
Overall, UBS sees scope for 15%-20% upside to Street earnings estimates for FY27-FY29.
CarTrade Tech shares ended 2.7% higher at ₹2,809.40 on Friday and have rallied nearly 21% over the past month.
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