Stock Crash: This company's shares fell by 17%, JM Financial gave 'sell' rating, sellers started competing

News Topical, Digital Desk : Stock Crash: On Wednesday, Cartrade Tech Limited's shares recorded the biggest single day fall. Due to this fall, the shares fell by 17%. With this fall, the stock also broke the upward trend of the last 3 days.

Brokerage firm JM Financial has downgraded Cartrade Tech's rating from 'HOLD' to 'SELL', while raising its price target from ₹1,900 to ₹2,350. As per the new target, the stock is expected to have a downside of about 14%.

JM Financial said that the company's current EBITDA multiple is 43 times, which is high for companies that earn their revenue mainly from B2B clients. However, the company's B2C platforms are also working. How did the improvement come? There has been some positivity due to the improvement in the OLX platform, but JM Financial believes that it does not make any major change in their forecast. Apart from this, consumer surveys are showing that the rise of generative AI tools like ChatGPT and Perplexity is reducing the use of Google search, which is a big risk for the company. Cartrade Tech said that the harmonization of GST rates through the Automotive Council will make it easier for buyers to buy products, which will improve consumer filling. Transactions of new and old vehicles will accelerate. The company's consumer platforms, CarWale and BikeWale, have seen a growth of more than 25% in consumer traffic. Banwari Lal Sharma, CEO, Consumer Group, Cartrade Tech, said, "The GST cut is a game-changer for India's automotive industry. This will reduce the cost to the consumer and increase the sales momentum of dealers, which will start a new wave of demand." Stock Status Cartrade Tech shares are now trading at ₹ 2,271.9. From the low of March 2023 to the high of September 9, the stock had gained 8 times and crossed the IPO price of ₹ 1,618. With this decline, investors need to be cautious, especially when the market's bullish prospects remain volatile.

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