Cartrade Tech (CARTRADE)

FairStock Score: 29/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong reported growth: sales up 18.98% and profit up 41.76%, with latest quarter net profit of ₹62 Cr on ₹210 Cr sales.
• Very low leverage: debt/equity is only 0.05, so the balance sheet is not stretched.
• Piotroski F-Score of 7/9 indicates reasonably improving operating and financial health.
• Near-term profitability appears solid in the latest quarter, suggesting some operating leverage.

Concerns

• Zero promoter holding means no insider capital is at risk; poor owner alignment for minority shareholders.
• Valuation is demanding: P/E of 42.06 and P/B of 3.88 look high against an ROE of 4.85% and ROCE of 7.59%.
• No dividend yield; total return depends entirely on uncertain future price appreciation.
• The stock is near the bottom of its 52-week range of ₹1600.70 to ₹3290.50, reflecting market skepticism despite profit growth.

AI Analysis

As an investor, I look for predictable earning power and honest ownership. Cartrade Tech has neither in convincing form. The market values it at ₹8,617 crore, but the business earns a return on equity of only 4.85% and ROCE of 7.59%. That is not a moat; it is a mediocre capital engine. Sales grew 18.98% and profit grew 41.76%, and the latest quarter shows ₹210 crore of sales with ₹62 crore of net profit. The earnings momentum is real, but I must ask whether it is durable. A PEG ratio of 1.38 suggests growth is already paid for, and at 42.06 times earnings, I am getting a 2.4% earnings yield. Paying 3.88 times book value for a business whose book value per share is ₹434.79 and whose ROE is under 5% leaves me no margin of safety. On the positive side, debt/equity is 0.05, so the balance sheet is clean, and the Piotroski F-Score of 7/9 points to improving fundamentals. But the negatives are severe for a Buffett-style test. There is no dividend yield, so the small shareholder receives no cash while waiting. More alarming, promoter holding is 0.00%. No promoter holding means no owner capital beside mine, and that is against my rule of investing with whom I trust. The stock trades at ₹1688.70, near the lower end of its 52-week range of ₹1600.70 to ₹3290.50. The market has already repriced it down, and FairStock Score at 35/100, MIXED, is not a vote of confidence. I want more evidence of competitive advantage, better capital returns, and inside ownership before I pay this multiple. This is a fast grower, not a quality compounder. I would sit on the sidelines.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer