Block Deal in Car Trade with 15% Equity Exchanged Hands

CarTrade Tech is an online Indian platform that acts as a marketplace for buying/selling of new/old vehicles. The company operates a comprehensive automotive digital ecosystem, connecting various stakeholders such as automobile customers, OEMs, dealers, banks, and insurance companies. The company owns and operates several brands, including CarTrade, CarWale, and AutoBiz.

Block Deal

Shares of CarTrade Tech experienced a decline of over 3% in early trading today following a substantial block deal. In this transaction, 7 lakh shares, representing 15% equity, changed hands at an average price of Rs.828 per share. The deal, valued at Rs.588.3 crore, happened on June 24, 2024. Notably, the specific buyers and sellers involved in this transaction are yet to be announced.

Financial Performance

For the Q4FY24, CarTrade Tech reported a 50% increase in net profit, reaching Rs.22.5 crore compared to Rs.15 crore in the previous year. Revenue rose by 51.4% to Rs.145.3 crore from Rs.96 crore year-on-year. EBITDA also saw significant growth, climbing to Rs.27.4 crore from Rs.11.6 crore, with EBITDA margins improving to 18.9% from 12.1% year-on-year.

Share Performance

CarTrade Tech shares had reached a 52-week high of Rs.974 on May 8, 2024, and a 52-week low of Rs.470.25 on June 23, 2023. The stock’s RSI stands at 55.8, indicating that it is neither overbought nor oversold. Over the past year, CarTrade Tech shares have gained around 77%, including a 17% rise in 2024.

Market Reaction

As a result of this block deal, CarTrade Tech shares dropped by 3.4%, closing at Rs.827.75, down from the previous close of Rs.856.90 on the BSE. The company’s market capitalization fell to Rs.3,916.70 crore. The trading volume surged with 78.17 lakh shares changing hands, leading to the highest turnover of Rs.647.65 crore on the BSE.

Conclusion: In conclusion, CarTrade Tech’s recent block deal caused a significant market reaction, leading to a notable drop in share price despite the company showing robust financial performance and strong share gains over the past year. However, the financials of the company underlines its solid position in the automotive digital ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.