CarTrade Tech Shares Crash 16% Intraday Despite Surge in Traffic Post-GST Cut

CarTrade Tech suffered its worst single-day fall, with shares plunging 12.6% to ₹2,391.50 after JM Financial downgraded the stock to 'sell', citing a high 43x EBITDA multiple for FY27 as "too rich" for a B2B-dependent business. The downgrade overshadowed strong operational news: a 25% surge in traffic on its CarWale and BikeWale platforms following recent GST cuts on vehicles. The tax reduction is expected to boost auto demand, dealer participation, and used car volumes—key growth drivers for CarTrade. However, concerns over cyclical B2B revenue and potential disruption from generative AI affecting search traffic have raised investor caution. Despite the dip, the stock has surged 8x since March 2023. With mixed analyst views—4 'buy', 3 'sell' ratings—the market remains divided on whether the valuation justifies its growth potential. The challenge now lies in converting rising consumer interest into sustainable revenue growth.