CarTrade Tech shares jump 12%; brokerage says OLX's Elite Buyer programme could drive growth
According to the domestic brokerage's analysis, OLX's Elite Buyer programme could emerge as a meaningful monetisation lever if its paid-user subscriptions continue to scale up steadily.
- Jul 27, 2026,
- Updated Jul 27, 2026 11:45 AM IST
Shares of CarTrade Tech Ltd surged in Monday's trade, rising 11.57 per cent to hit a high of Rs 2,962.10. JM Financial, in its recent report, has maintained a 'Buy' rating on the stock and raised the target price.
According to the domestic brokerage's analysis, OLX's Elite Buyer programme could emerge as a meaningful monetisation lever if its paid-user subscriptions continue to scale up steadily.
"Launched in Jul'25, the initiative has started seeing healthy adoption due to an optimal pricing strategy that captures high-intent demand," it stated.
"We reckon even a modest 5 per cent conversion of the platform's ~6 million monthly buyers at a nominal monthly ARPU of ~Rs 200 has the potential to unlock ~Rs 700 million (Rs 70 crore) in incremental revenue. OLX's FY26 revenue stood at Rs 2.2 billion (Rs 220 crore) with barely any contribution from buyer monetisation," JM added.
"Beyond Elite Buyers, the business is concurrently working on initiatives around Elite Sellers, verified users, escrow-led transactions and fintech services that could unlock further monetisation opportunities, in our opinion," the brokerage also said.
It noted that these revenue streams leverage OLX's existing traffic and listing base, implying that incremental marketing spend may not be necessary.
All in all, successful execution of these initiatives could materially improve the growth and profitability outlook for OLX. Accordingly, we are raising OLX's FY27E‒29E revenue/EBITDA by 11‒25 per cent/17‒28 per cent and the target EV/EBITDA to 40x (from 30x). This, along with a valuation rollover to Jun'27E, drives up the TP to Rs 3,150 (from Rs 2,340); reiterate BUY," JM further stated.
Meanwhile, the brokerage flagged market share loss in New Auto advertising to newer formats, any disruption in New Auto supply, sustained pressure in repossessions, and any mistakes in capital allocation (the stock was previously beaten when rumours of a GoMechanic acquisition surfaced) as key downside risks.
Shares of CarTrade Tech Ltd surged in Monday's trade, rising 11.57 per cent to hit a high of Rs 2,962.10. JM Financial, in its recent report, has maintained a 'Buy' rating on the stock and raised the target price.
According to the domestic brokerage's analysis, OLX's Elite Buyer programme could emerge as a meaningful monetisation lever if its paid-user subscriptions continue to scale up steadily.
"Launched in Jul'25, the initiative has started seeing healthy adoption due to an optimal pricing strategy that captures high-intent demand," it stated.
"We reckon even a modest 5 per cent conversion of the platform's ~6 million monthly buyers at a nominal monthly ARPU of ~Rs 200 has the potential to unlock ~Rs 700 million (Rs 70 crore) in incremental revenue. OLX's FY26 revenue stood at Rs 2.2 billion (Rs 220 crore) with barely any contribution from buyer monetisation," JM added.
"Beyond Elite Buyers, the business is concurrently working on initiatives around Elite Sellers, verified users, escrow-led transactions and fintech services that could unlock further monetisation opportunities, in our opinion," the brokerage also said.
It noted that these revenue streams leverage OLX's existing traffic and listing base, implying that incremental marketing spend may not be necessary.
All in all, successful execution of these initiatives could materially improve the growth and profitability outlook for OLX. Accordingly, we are raising OLX's FY27E‒29E revenue/EBITDA by 11‒25 per cent/17‒28 per cent and the target EV/EBITDA to 40x (from 30x). This, along with a valuation rollover to Jun'27E, drives up the TP to Rs 3,150 (from Rs 2,340); reiterate BUY," JM further stated.
Meanwhile, the brokerage flagged market share loss in New Auto advertising to newer formats, any disruption in New Auto supply, sustained pressure in repossessions, and any mistakes in capital allocation (the stock was previously beaten when rumours of a GoMechanic acquisition surfaced) as key downside risks.