Car trade tech: CarTrade Soars 9% Near 52-Week High After Strong Q4; Stock Surges 110% in 1 Year
The Car trade tech reported robust profit in the Q42024 as Rs.22.5 cr from Rs.14.52 cr profit in the previous quarter. EBITA Margin stood at 18.9% and EBITA profit increased at YoY by 23% as Rs.49.14 cr.The Company total revenue is 51% increased at YoY and stands at Rs.145.27 cr.
CARTRADE TECH Market Price is moving in Ascending trend line and market has rebounded from the higher low area of the pattern
CarTrade Tech experienced a notable surge of over 9 percent in its share price, building upon the significant gains witnessed in the previous session. This two-day spike of 18 percent was spurred by the company’s announcement on May 6, revealing a remarkable 50 percent increase in net profit to Rs 22.5 crore for the quarter ending March 2024.
The company’s revenue also demonstrated robust growth, climbing by 51 percent year-on-year to reach Rs 145.27 crore, largely driven by the performance of OLX’s classifieds business.
CarTrade Tech operates within the automotive digital ecosystem, facilitating connections between automobile customers, original equipment manufacturers (OEMs), dealers, banks, insurance companies, and other key stakeholders. The company operates under multiple brands, including CarTrade, CarWale, and AutoBiz.
During the fourth quarter of FY24, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 23 percent year-on-year to Rs 49.11 crore, with EBITDA margins expanding to 18.9 percent.
Analysts at JM Financial highlighted that despite the impressive performance, CarTrade Tech’s potential remains undervalued in the eyes of investors, who have been cautious due to the stock’s performance since 2021. They emphasized the need for a deeper understanding of the company’s business models and competitive advantages within the investor community.
The brokerage anticipates sustained annualized growth of 20-25 percent, supported by favorable market conditions and margin expansion opportunities.
CarTrade Tech shares have exhibited low volatility, with a one-year beta of 0.4, while delivering substantial returns of 110 percent over the past year. Despite broader market fluctuations, the stock has outperformed the benchmark Nifty 50, recording a gain of 20 percent year-to-date.
Nifty50: SEBI Rejects NSE’s Proposal to Extend F&O Trading Hours
The SEBI Rejected the NSE proposal of Indian Market trading hours extension in F&O segment, 6pm to 9pm from current 9.00 am to 3.30 pm. Among the Brokers community said extended trading hours will take extra technology requirements and Man Power according to trading hours extended.
NIFTY 50 Index Market Price is moving in Ascending channel and market has reached higher low area of the channel
So SEBI takes the Broker community rejection as Major part and gives the rejected proposal to NSE without extending trading hours.
The Securities and Exchange Board of India (SEBI), the market regulator, has declined the National Stock Exchange’s (NSE) proposal to extend market timings in the derivatives segment. This decision was made due to a lack of consensus among the broking community regarding the proposed changes.
The proposal outlined a phased plan to gradually extend trading hours for index Futures and Options (F&O) contracts. Initially, the plan suggested extending trading hours from 6 pm to 9 pm to enable market participants to respond to global news flow in the evening. Subsequently, in the second phase, trading hours could have been extended until 11:30 pm. Finally, in the third phase, it was proposed to extend cash market trading hours until 5 pm.
However, the broking community failed to reach a consensus on extending trading hours, citing concerns over additional costs and technological requirements. Ashishkumar Chauhan, MD & CEO of NSE, mentioned during an analyst conference call following NSE’s Q4 results that the proposal for extended trading hours has been shelved for the time being.
Dhiraj Agarwal, MD at Ambit Investment Managers, expressed his preference against extending trading hours, stating that the current trading hours are already lengthy, and market participants are already working hard enough.
Earlier this year, the stock brokers’ body, Association of National Exchanges Members of India (ANMI), had approved the proposed plan to extend trading hours.
In Q4FY24, NSE reported a 55 percent year-on-year (YoY) increase in net profit, with revenue surging by 34 percent YoY to reach Rs 4,625 crore. Additionally, the exchange announced plans to issue four bonus shares for every one held and declared a dividend of Rs 90 per share.
Lupin: Lupin Stocks Drop 5% on Q4 Profit Miss
The Lupin reported net profit Rs.359.4 cr for the March Quarter and it is well estimate of Rs.498.9 cr and it is 52% increase YoY from Rs.235.96 cr in the previous quarter. The Total revenue increased by 13% in this quarter as Rs.4895.11 cr from Rs.4330.03 cr in the previous quarter and it is below the estimate of Rs.5057.70 cr. EBITA Margin increased by 18.4% in this quarter.
LUPIN Market Price is moving in box pattern and market has fallen from the resistance area of the pattern
On May 7, shares of Lupin experienced a decline of approximately 5 percent in early trading following the company’s report of a lower-than-expected rise in its net profit for the fourth quarter of fiscal year 2023-24. The decline was primarily attributed to an increase in raw material costs.
Lupin, a pharmaceutical company, disclosed a net profit of Rs 359.4 crore for the March quarter, significantly below CNBC-TV18’s estimate of Rs 498.9 crore. However, this figure represented a 52 percent increase year-on-year from Rs 235.96 crore recorded in the same period the previous year.
Market expectations for Lupin’s net profit were even higher, driven largely by anticipation of robust performance from its blockbuster asthma drug, Spiriva.
Although revenue increased by 13 percent to Rs 4,895.11 crore compared to Rs 4,330.3 crore in the corresponding period last year, it fell short of CNBC-TV18’s expectation of Rs 5,057.70 crore.
Meanwhile, Lupin’s operational performance exhibited significant improvement, with its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanding by 641 basis points to 20.4 percent in Q4. This substantial margin expansion was attributed to the inclusion of the high-margin asthma drug, Spiriva, in the product mix.
Brokerage firm Nomura highlighted the impressive margin expansion, which exceeded its estimates by 8 percent, despite a seasonally weak quarter and increased research and development (R&D) expenditure.
Lupin’s management expressed confidence in the company’s growth prospects moving forward.
Nilesh Gupta, Managing Director of Lupin, stated, “While FY24 has been a year of resurgence for the company, we look forward to an even stronger FY25 driven by growth across our key geographies and consistent improvement in our margins.”
Nomura suggested that Lupin could see potential upside from US product launches and stringent cost management compared to the brokerage’s current earnings estimates. Nomura reiterated a ‘buy’ rating on the stock with a price target of Rs 1,949.
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