Mumbai, Sept. 11 -- The selloff was sparked after a domestic brokerage downgraded the stock to sell from hold, even as it raised the price target to Rs 2,350 from Rs 1,900. The broker flagged rich valuations, noting CarTrade trades at 43x FY27 EBITDA while still relying almost entirely on B2B revenues.

It added that while CarTrade runs consumer-facing platforms, they remain exposed to the cyclical nature of B2B spending. Recovery in OLX was termed "on expected lines," with no change in forecasts. Rising adoption of generative AI tools like ChatGPT and Perplexity over Google Search was also cited as a risk for the company.

Despite the correction, the stock remains up 39.4% in three months and 153.35% over the past year.

On 10 September ...