UBS initiates coverage on CarTrade Tech with Buy rating, sees 42% upside. 4 reasons why

UBS initiated coverage on CarTrade Tech with a Buy rating and a 42% upside target. The brokerage expects EBITDA margin to expand to 47% by FY30 from 33% in FY26, backed by a 24% revenue CAGR over FY26-FY30 and operating leverage from an asset-light model. UBS sees 15-20% upside to consensus FY27-FY29 earnings estimates and highlighted underappreciated growth potential in its OLX platform, where ARPU could rise from Rs 12 to Rs 30 by FY30.