Synopsis:
Landmark Cars is in focus after B&K Securities expects it to outshine shortly, which led them to set a price target that is 61 percent upside from its current level.
The shares of India’s first multi-brand, multi-location auto dealer operating in the premium and luxury car segment is in focus after leading brokerage B&K Securities has initiated a buy call on the stock with a potential upside of 61 percent from its current price.
With a market capitalization of Rs 2,176 crores, the shares of Landmark Cars Ltd are currently trading at Rs 526 per share, down by 25 percent from its 52-week high of Rs 703 per share. Over the last one year, the stock has delivered a negative return of 16 percent.
Leading brokerage house B&K Securities has assigned a ‘Buy’ call on the stock with a target price of Rs 820 per share, signalling an upside potential of 61 percent from its previous day closing price of Rs 507.85 per share.
Landmark Cars has experienced revenue growth from FY23 to FY25, with proforma sales (sales referred as the preliminary estimation of sales figures, often presented in a pro forma invoice, before a sale is finalized) and revenue increasing at 11 and 9 percent CAGR rate respectively, which is nearly double the Indian passenger vehicle sales CAGR of 5 percent over FY23-25.
However, profitability has declined, with profit after tax down 55 percent, primarily because of losses from 17 new outlets that are expected to break even by FY26. On a positive note, older outlets have contributed significantly to profits, and partnerships with M&M, Kia, and MG Motors are expanding the brand portfolio.
The company is well-placed in the premium auto market with a presence across India, strong original equipment manufacturer (OEM) relationships, and high entry barriers due to the complexity of capital and operations. As after-sales revenue from new brands grows and new outlets mature, margins are projected to improve from 5.5 percent to 7.5 percent by FY27.
Financial Highlights
Landmark Cars reported a consolidated revenue of Rs 4,026 crores in FY25, up 22.44 percent from Rs 3,288 crores in FY24. However, it reported a net profit of Rs 17 crores in FY25, down by 70 percent from its FY24 net profit of Rs 57 crores.
The stock delivered a poor ROE and ROCE of 3.10 percent and 8 percent respectively, and is currently trading at a P/E of 128.58x, much higher than its industry average of 67.71x.
Landmark Cars Limited, founded in 1998 and based in Mumbai, is a top automotive retail company in India. It runs dealerships for several major brands, including Honda, Mercedes-Benz, Renault, Jeep, Volkswagen, Ashok Leyland, BYD, Morris Garages, Mahindra & Mahindra, and Kia.
The company provides a variety of services, such as pre-sales consultation, financing, insurance, roadside assistance, and after-sales support. It also sells car accessories under its own brand, Landmark Genuine Accessories.
Written by Satyajeet Mukherj
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