Synopsis:
Landmark Cars jumped sharply after it received an LOA from Kia India to establish a new showroom at B.T. Road, Kolkata. It will be their new second Kia showroom in the city, besides the two workshops, thus expanding the brand’s total dealerships in the state of West Bengal to 10 for different car brands.
The shares of this leading premium auto dealer in the nation are in focus as it eyes opening another showroom in Kolkata. In this article, we will dive more into the details of this LOA.
With a market capitalization of Rs 2,725 crore, the shares of Landmark Cars Ltd made a day high of Rs 664.80 per share, up by 3 percent from its previous day closing price of Rs 646.70 per share. In the last one year, the stock has delivered a positive return of 8 percent, outperforming the NIFTY 50’s return of 0.21 percent.
About the announcement
Landmark Cars Limited, an India-based, top luxurious automotive retail network, declared that the company was permitted by Kia India to launch a new showroom at B.T. Road, Kolkata. The new location will represent the company’s Landmark Premium Cars Private Limited, its wholly-owned subsidiary.
Presently, Landmark has three facilities for Kia in the city – one showroom and two workshops. The new showroom will likely not only strengthen Kia’s sales in the area but also increase the total car parc and the turnover of the workshops. Therefore, the company will have a total of ten dealerships in West Bengal, covering different auto brands.
Car parc” (or vehicle parc) simply means the total number of vehicles currently on the road in a specific area or market. So, when Kia expands its showroom, it’s expected to increase Kia’s share of that vehicle base in Kolkata.
Also Read: IT stock jumps 4% after company announces partnerships with over 15 fintechs for business expansion
Financials Highlights
The company’s revenue for Q1 FY26 came in at Rs 1,062 crore, up by 28 percent from Rs 832 crore in the same quarter last year. However, on a sequential basis, revenue declined slightly by 3 percent from Rs 1,091 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 114 percent to Rs 7.37 crore in Q1 FY26 as compared to Rs 3.45 crore in Q1 FY25. Additionally, on a QoQ basis, it surged by 321 percent from Rs 1.75 crore.
The company has delivered a poor ROE and ROCE of 3.09 percent and 8 percent respectively, and is currently trading at a high P/E of 147.42x as compared to its industry average of 79.50x.
Landmark Cars is one of the top premium auto dealers in the nation with an impressive array of brands such as Mercedes-Benz, Honda, Jeep, Volkswagen, BYD, Renault, Mahindra & Mahindra, Kia, MG Motors, Citroën, and Ashok Leyland in the commercial vehicle sector. The company is involved in the entire automotive value chain, covering the sale of new and used vehicles, after-sales service and repairs, and the provision of finance and insurance products.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
