CarTrade Tech Share Price Surges on Sobek Auto India’s Strategic Move

CarTrade Tech Share Price Surges on Sobek Auto India's Strategic Move

VoM News Desk | October 25, 2023 | 03:40 PM IST | Breaking News | Follow on Google News

CarTrade Tech Share Price Surges on Sobek Auto India’s Strategic Move

CarTrade Tech Share Price Surges on Sobek Auto India’s Strategic Move

In a surprising turn of events, CarTrade Tech witnessed a substantial increase in its share price, surging nearly 4% during Wednesday’s trading session. This upward momentum can be attributed to the strategic decision made by Sobek Auto India Pvt Ltd, a wholly owned subsidiary of CarTrade Tech, to discontinue its Customer-to-Business (C2B) operations in the auto transaction business.

Sobek Auto India’s Shift in Focus

The announcement that Sobek Auto India would cease its C2B operations and redirect its efforts towards other areas sent CarTrade Tech’s share price soaring. This significant decision was made in response to the economic challenges that the company was grappling with, as stated in an official exchange filing by CarTrade Tech. Sobek Auto India now intends to expand its Classified division, which includes Olx.in and encompasses both automotive and non-automotive verticals.

A Brighter Future for Sobek’s Classified Business

Sobek’s Classified business, featuring Olx.in, has demonstrated profitability and holds promising growth potential for the future. Recognizing the vast potential within the classified industry for long-term growth and wealth generation, Sobek has strategically chosen to channel its resources and efforts in that direction. OLX Classifieds has made a significant mark in the Indian classifieds market, boasting more than 100 million app downloads and offering diverse services across 12 different categories, including real estate, technology, and automobiles.

CarTrade Tech’s stock price has shown remarkable resilience, even in challenging market conditions. The company’s shares have registered a 3% increase despite the overall market downturn. From a technical standpoint, the stock prices have maintained an upward trajectory, with higher tops and higher bottoms. The current price correction aligns with broader market trends, making 610-600 a strong support zone while facing resistance in the range of 680-690.

VoM News Desk

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