CarTrade Tech Limited (NSE:CARTRADE) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹2.1b, statutory earnings missed forecasts by 14%, coming in at just ₹11.88 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CarTrade Tech after the latest results.
Taking into account the latest results, the most recent consensus for CarTrade Tech from ten analysts is for revenues of ₹9.19b in 2027. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 17% to ₹55.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹9.53b and earnings per share (EPS) of ₹57.32 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
View our latest analysis for CarTrade Tech
It'll come as no surprise then, to learn that the analysts have cut their price target 5.5% to ₹3,196. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on CarTrade Tech, with the most bullish analyst valuing it at ₹4,115 and the most bearish at ₹2,250 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of CarTrade Tech'shistorical trends, as the 24% annualised revenue growth to the end of 2027 is roughly in line with the 22% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although CarTrade Tech is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CarTrade Tech's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for CarTrade Tech going out to 2029, and you can see them free on our platform here.
We also provide an overview of the CarTrade Tech Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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