CarTrade share price down 15% below IPO price. But analysts remain bullish

Market


CarTrade share price today is quoting 1380 per equity levels (at 11:29 AM on NSE) — around 15 per cent below its issue price of 1618 apiece. However, stock market analysts are still bullish on the tech stock as second hand car market in India is expected to grow from $27 billion to $50 billion by 2026 — giving CAGR growth of 15 per cent. Analysts went on to add that one should buy CarTrade counter for long-term as this is a digital platform, which is properly established and it will make good money after the rise in volume as unlock theme is gaining momentum.

Advising investors to buy CarTrade shares for long-term; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “CarTrade is a digital platform for second hand car market, which is expected to grow from current $27 billion to $50 billion by 2026 — delivering CARG growth of 15 per cent. Since, second hand car market is expected to almost double from its current size, CarTrade may also get benefit of this business volume growth. Since, the stock is around 15 per cent below its issue price of 1618 apiece, one should start accumulating this counter and every dip from now should be seen as buying opportunity.” However, Avinash Gorakshkar maintained that position has to be for long-term. He said that CarTrade is a digital platform, which is properly established and its business volume is expected to grow many folds as unlock theme is fast gaining momentum.

Highlighting the technicals in regard to CarTrade shares; Rohit Singre, Senior Technical Analyst at LKP Securities said, “CarTrade has immediate hurdle at 1415 per stock levels. Once it breaks this hurdle on closing basis, it may give sharp upside moves and scale up to 1550 in short-term.” He advised investors to buy CarTrade shares above 1415 maintaining stop loss at 1400 levels.

Advising investors to wait as some more correction can be seen in CarTrade share price; Sumeet Bagadia, Executive Director at Choice Broking said, “If it fails to break the immediate hurdle of 1410 to 1420 apiece, there can be some more correction taking place in the counter and it may go up to 1300 to 1250 per equity share levels.”

Market experts recommended investors to either buy CarTrade shares above 1415 or at 1300 per stock levels as it would help investors get maximum return on their money.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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