Thread by @MStockaholic

🧵🧵CarTrade IPO🧵🧵 - #MalluStockaholic

Analysis of #CarTradeIPO - he Only Profitable Used Car Seller and Car Aggregator

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(1/n)

📅📅 IPO details 📅📅

IPO Opening DateAug 9, 2021
IPO Closing DateAug 11, 2021
IPO Price₹1585 to ₹1618 per equity share
Market Lot9 Shares
The entire issue is an offer for sale
List on BSE and NSE on 23rd Aug 2021
(2/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

🌆🌆Company Details🌆🌆
Incorporated in 2000, Mum-based CarTrade Tech Ltd is a multi-channel online and offline auto aggr platform, founded by Vinay Sanghi, ex-CEO of Mahindra First, and Rajan Mehra, ex-country head of eBay Ind
(3/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

CarTrade offers an online and offline auto platform for vehicle dealers, new & used customers, original equipment manufacturers (OEM), & other businesses to facilitate buying and selling various types of vehicles.

(4/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

also wrk as a s/w company that interconnects various stakeholders such as vehicle dealers, manufacturers, and banks/NBFCs. Have a robust network of over 180 owned or franchisee stores, 40+ OEMs, and more than 15,000 dealers.
(5/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

Brands of CarTrade Tech
The group operates several well-known brands such as CarWale, BikeWale, CarTradeExchange, AutoBiz, Adroit Auto, and Shriram Automall.

(6/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

Strengths
👉Leading Marketplace for Automotive Sales with a Synergistic Ecosystem.
👉Brands and Customer Experience Driving Powerful Network Effects.
👉Proprietary End-to-End Technology Platforms.

(7/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

👉Many car buyers are shifting to used cars to cut down their costs, which can be a boon to the company
👉The company’s CarWale and BikeWale platforms ranked #1 on relative online search popularity compared to peers.

(8/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

For Jun 2021Q, the company’s BikeWale, CarWale, & CarTrade collectively had an average of 27.11mn unique visitors per month. Of these 88.1% were organic visitors, which means the company didn’t have to spend anything to get them
(9/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

Risks
🙁The slowdown caused in the mobility and auto sector due to the COVID-19 has had an impact on CarTrade.
🙁Demand for certain used cars may witness unwarranted decline due to the introduction of new cars built with innovative technologies
(10/n) #MalluStockaholic #CarTrade

Ride-Hailing Services (Uber Ola)
- People check online but end up buying offline
- In the past, some of the vehicles sold through their websites and apps were stolen vehicles
- Competition from dealers, OEMs, other online aggregators (we will see soon)
(11/n) #MalluStockaholic

Financials
The PE ratio based on diluted EPS for FY 2021 at the upper end of the price band is 84.31
For the last three fiscals, CarTrade’s weighted average return on net worth has been 3.52%
(12/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

GMP of the IPO - ~400Rs
Price is fair comped with listed competitors.
Expect to list at premium
Applying for this IPO for listing gains/Longer term.
(13/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

Take the above points as a study material and not as a recommendation.

Will you apply for #CARTRADEIPO?

#StockMarketindia #StockMarket
(n/n) #MalluStockaholic #CarTrade #CarTradeIPO #IPO

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