Piper Serica's Abhay Agarwal backs CarTrade Tech as value bet; weighs in on Eternal
"Through CarTrade, you are getting to back the entire auto industry," said Abhay Agarwal in an interview with Business Today. The company serves as one of the largest lead generators for Original Equipment Manufacturers (OEMs) across the country, providing it a unique position in the value chain.
- Jul 22, 2025,
- Updated Jul 22, 2025 4:37 PM IST
CarTrade Tech Ltd is emerging as a strong bet in India's digital economy as investors shift focus toward profitable and sensibly valued internet companies. Abhay Agarwal, Managing Director and Chief Investment Officer of Piper Serica, highlighted CarTrade's strategic positioning in the auto ecosystem as a key reason for its recent inclusion in their portfolio.
"Through CarTrade, you are getting to back the entire auto industry," said Agarwal in an interview with Business Today on Tuesday. The company serves as one of the largest lead generators for Original Equipment Manufacturers (OEMs) across the country, providing it a unique position in the value chain.
Agarwal also cited CarTrade's takeover of OLX India’s auto division as a key advantage. "The company has acquired OLX and it will start monetising it soon," he said, suggesting that this move would significantly enhance CarTrade's reach and revenue potential in the digital classified and used vehicle marketplace.
Unlike many internet companies that continue to trade at high valuations without consistent profits, CarTrade is seen as a more grounded play. "It is still trading at a sensible valuation with nearly Rs 1,000 crore cash on books and already profitable. So, this fits into our investment criteria," Agarwal noted.
He also mentioned that the company's strong presence in the auto sector makes it an attractive option for long-term investors looking for value in the internet space.
The market expert acknowledged high-growth names like Eternal Ltd (formerly Zomato), Paytm, Policybazaar and Swiggy as survivors in the "winner-takes-all" digital space.
However, Agarwal pointed out that companies like Eternal are trading at steep valuations which do not align with Piper Serica's value-focused framework.
"I'm sure investors buying Eternal probably aren't making a mistake, but everyone has their own framework. It just doesn't fit into ours," he added.
According to Trendlyne data, Eternal's trailing 12-month (TTM) price-to-earnings (PE) ratio stood at 967.6, significantly above the industry average, whereas CarTrade's PE was 66.9, which is below the industry median.
CarTrade Tech Ltd is emerging as a strong bet in India's digital economy as investors shift focus toward profitable and sensibly valued internet companies. Abhay Agarwal, Managing Director and Chief Investment Officer of Piper Serica, highlighted CarTrade's strategic positioning in the auto ecosystem as a key reason for its recent inclusion in their portfolio.
"Through CarTrade, you are getting to back the entire auto industry," said Agarwal in an interview with Business Today on Tuesday. The company serves as one of the largest lead generators for Original Equipment Manufacturers (OEMs) across the country, providing it a unique position in the value chain.
Agarwal also cited CarTrade's takeover of OLX India’s auto division as a key advantage. "The company has acquired OLX and it will start monetising it soon," he said, suggesting that this move would significantly enhance CarTrade's reach and revenue potential in the digital classified and used vehicle marketplace.
Unlike many internet companies that continue to trade at high valuations without consistent profits, CarTrade is seen as a more grounded play. "It is still trading at a sensible valuation with nearly Rs 1,000 crore cash on books and already profitable. So, this fits into our investment criteria," Agarwal noted.
He also mentioned that the company's strong presence in the auto sector makes it an attractive option for long-term investors looking for value in the internet space.
The market expert acknowledged high-growth names like Eternal Ltd (formerly Zomato), Paytm, Policybazaar and Swiggy as survivors in the "winner-takes-all" digital space.
However, Agarwal pointed out that companies like Eternal are trading at steep valuations which do not align with Piper Serica's value-focused framework.
"I'm sure investors buying Eternal probably aren't making a mistake, but everyone has their own framework. It just doesn't fit into ours," he added.
According to Trendlyne data, Eternal's trailing 12-month (TTM) price-to-earnings (PE) ratio stood at 967.6, significantly above the industry average, whereas CarTrade's PE was 66.9, which is below the industry median.