Luxury theme play: Premium auto retailer profits in top gear; check if you own it!
Since listing of shares, it has accumulated gains of 62.63 per cent for its shareholders. Currently, the stock is trading at Rs 745.50, which is 12.06 per cent away from its 52-week high.
In the second quarter of the fiscal year 2024 of Landmark Cars limited, the consolidated proforma revenue soared to Rs 1120 crore, marking a substantial 19.9 per cent quarter-on-quarter growth. The company's EBITDA for the same period stood at Rs 57.1 crore, demonstrating a commendable 22 per cent quarter-on-quarter growth. The net profit for Q2FY24 reached Rs 20.5 crore, showcasing jump of 22 per cent year-on-year increase from Rs 16.8 crore in Q2FY23, and a notable surge of 182.11 per cent quarter-on-quarter increase from Rs. 7.26 crore in Q2FY23.
Management Commentary
Commenting on the Q2FY24 performance, Mr. Sanjay Thakker, Promoter, and Executive Chairman, Landmark Cars Limited, said,
“The automotive retail industry in India continued its growth trajectory with sustained demand for premium and luxury vehicles. The aftersales and spares business showed strong growth underlying its predictable nature and should sustain its growth in the coming quarters. We have seen improving vehicle supplies from OEM’s September onwards.
Going ahead, we foresee steady growth attributed to the synergy of new product launches, a strong pipeline for organic and inorganic expansion, and an overall stabilization of our vehicle lineup, coupled with our after-sales & service business and deeper foray into the pre-owned vehicles sales business.”
Financial Snapshot
Landmark Cars have shown profit growth of 38.1 per cent compounded annually over the last five years. The company delivered a return on equity of 25.2 per cent last year. Since its listing of shares, it has accumulated gains of 62.63 per cent for its shareholders. Currently, the stock is trading at Rs 745.50, which is 12.06 per cent away from its 52-week high.
About Company
Landmark Cars Limited is the leading premium automotive retailer in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. The company also serves the commercial vehicle retail business of Ashok Leyland in India.
Disclaimer: The article is for informational purposes only and not investment advice.
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