Shares of this small-cap auto dealership were in focus after the company signed a Letter of Intent (LoI) for a new dealership in association with MG Motors in Ujjain, Madhya Pradesh.
With a market capitalization of Rs 2,959.43 crores, the stocks of Landmark Cars Limited, one of the leading premium automotive retail businesses in India, started their trading session on Thursday at Rs 719.90 and closed the session at Rs 718.50, gaining approximately 0.50 percent compared to the previous closing levels of Rs 714.85 apiece.
In a recent filing with the Bombay Stock Exchange (BSE), the company intimated about the receipt of a Letter of Intent (LoI) from “MG Motor India Private Limited” for the purpose of opening a new dealership in Ujjain, Madhya Pradesh.
The abovementioned dealership will be established by ‘Aeromark Cars Private Limited’, a wholly-owned subsidiary company of Landmark Cars, and the same will include sales as well as after-sales of MG Cars. After Indore and Bhopal, this is Landmark’s third MG dealership in the state of Madhya Pradesh.
During the recent financial quarters, the company’s prime business indicators, viz, operating revenues and after-tax profits, showed opposing movements. The former, on one end, increased from Rs 771 crores during Q2FY24 to Rs 959 crores during Q3FY24, and the latter, keeping the timeframe the same, slipped marginally from Rs 20 crores to Rs 18 crores.
As per the latest shareholding pattern data for the December 2023 quarter, the company’s Promoters hold a 51.82 percent stake, and the Foreign Institutional Investors (FIIs) holding a considerable stake of 8.4 percent in the company.
Landmark Cars Limited is present across various automotive retail value chains, including sales of new vehicles, repairs, after-sales service, and facilitation of the sales of third-party financial and insurance products. Generating its revenue entirely from India, the company is operating in a single segment namely the dealership of cars.
Written by Amit Madnani
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