Prashant Jain and Sunil Singhania’s Small-cap Stock Trading Below Their Buying Price – Should You Bet?

Small-cap Stock Trading Below Prashant Jain and Sunil Singhania’s Buying Price – Should You Bet?

The Nifty Smallcap 100 index experienced a decline of over 2 per cent on Monday, marking its sharpest fall and pushing the index to levels last seen on August 16, 2024. Despite this correction, it may be an opportune moment to explore stocks within this space that have caught the attention of renowned investors. One such stock is Landmark Cars Ltd.

When we refer to renowned investors, we are talking about individuals with a wealth of experience and a knack for identifying stocks at crucial inflection points. In this case, we are discussing two well-known figures: Prashant Jain, Founder and CIO at 3P, and Sunil Singhania, Founder of Abakkus Fund. Both of these seasoned investors have included Landmark Cars Ltd in their portfolios. Interestingly, the stock is currently trading below their acquisition cost. Abakkus Diversified Alpha Fund acquired shares of this Small-Cap stock at an average price of Rs 658, while 3P Indian Equity Fund 1 made similar purchases. Additionally, Goldman Sachs India holds a stake in this stock.

Landmark Cars Ltd is a leader in the premium automotive retail sector in India, with dealerships for brands such as Mercedes-Benz, Honda, Jeep, Volkswagen, BYD, Renault, Mahindra & Mahindra, Kia, and MG Motors. The company is also involved in the commercial vehicle segment through its association with Ashok Leyland. Landmark Cars operates across the entire automotive retail value chain, including the sale of new vehicles, after-sales services and repairs, pre-owned vehicle sales, and the facilitation of third-party financial and insurance products.

In a recent development, Landmark Cars, which is also the largest partner for Mercedes-Benz in India, received a Letter of Intent from Mercedes-Benz India for a new dealership in Patna. This dealership will cater to the high-potential markets of Bihar and Jharkhand. The business, operating as a standalone dealership under Landmark Cars Ltd, will encompass both sales and after-sales services for Mercedes-Benz vehicles in these regions.

Disclaimer: The article is for informational purposes only and not investment advice.