The stock price of Landmark Cars reached a new peak of Rs 598.60, increasing by 7% on the BSE during Wednesday’s trading session, following the company’s announcement of a robust 41.29% increase in total revenue from operations, which amounted to Rs 3,384 crore for the nine months ending December 2022. This was the company’s first stock market appearance since December 23, 2022.
The stock has experienced a 13% growth over the last seven days, whereas the S&P BSE Sensex has only seen a 1.5% rise.
The current stock price of Landmark Cars is 18% higher than the initial offering price of Rs 506 per share. Additionally, it has regained 38% of its value from its 52-week low of Rs 433.20, which was reached on December 26, 2022. The company attributes this strong performance to a number of favorable factors such as increasing income levels, new vehicle models released by their OEM partners, and a shift in consumer preferences towards luxury vehicles.
Landmark Cars reported that their highly profitable after-sales business saw significant growth during the same period. However, the company stated that vehicle sales revenue could have been even higher if it wasn’t for the chip shortage and supply chain disruptions caused by the current geopolitical situation. In addition, the company reported that the revenue from after-sales service and spare parts was higher during the second half of the previous year, as a result of the partial lockdowns due to COVID-19 that occurred in the first half.
In addition, during the same period, the company opened three new BYD brand outlets in Delhi-NCR and Mumbai, two new Jeep brand outlets in Navi Mumbai, and replaced two smaller workshops with a larger Mercedes Benz workshop in Kolkata. They also closed down seven non-viable Renault outlets in Punjab. The company also used Rs 138 crore, as of December 31, 2022, from the proceeds of their initial public offering (IPO) to pay off working capital loans, which is in line with their stated use of the proceeds in their prospectus.
Landmark Cars is a leading company in the premium automotive retail industry in India, and it operates dealerships for various well-known brands such as Mercedes-Benz, Honda, Jeep, Volkswagen, Renault, and Ashok Leyland. They are involved in the entire automotive retail value chain, including sales. The company had raised a total of Rs 552 crore through its initial public offering (IPO).
Landmark Cars is a leading automotive dealership for major Original Equipment Manufacturers (OEMs) with a strong focus on high-growth segments such as premium and luxury vehicles. The expanding presence in the after-sales segment is leading to predictable revenue growth and superior margins. The company’s inclusive business model that captures the entire customer value chain and its robust operations, leveraging innovation and digitization, are key features and advantages of the company.