Landmark Cars Ltd. share price target

Landmark Cars Ltd reported its Q1FY27 numbers, with revenue grew 22.66% YoY and 1.86% QoQ to Rs 13,024 Mn, above our estimate of Rs 12,938 Mn. Gross profit increased 12.46% YoY and down by 6.48% QoQ to Rs 2,015 Mn, below our estimate of Rs 2,210 Mn. GP margin stood at 15.47%, down 140 bps YoY and 138 bps QoQ, below our estimate of 17.08%. EBITDA grew 17.98% YoY to Rs 720 Mn, but declined 4.9% QoQ, below our estimate of Rs 770 Mn. EBITDA margin declined 22 bps YoY and 39 bps QoQ to 5.53%, below our estimate of 5.95%. PAT nearly...

Bottom in place, play on India's evolving PV market About the stock: Landmark Cars is a leading auto retailer for premium/luxury cars in India. Its key OEM partners in PV space include Mercedes Benz, Jeep, Honda, Volkswagen, Renault with recent additions being MG Motors, M&M and BYD. It has also partnered with Ashok Leyland in the Commercial Vehicle space. It has a network of 140 outlets in 12 Indian states and across 29 cities. Q4FY26 Results: Landmark cars reported healthy Q4FY26 results. Topline for the quarter came in at 1,279 crore (up ~17% YoY). EBITDA in Q4FY26 came in at 76...

Landmark Cars (LMC)’s EBITDAM, at 5.9%, was 30bps ahead of our estimate. Product interventions across partner brands are expected to support growth in the near-to-medium term.

Multi-Brand Growth Engine: Diversified presence across 10 OEMs enables above-industry revenue growth while reducing brand concentration risk. New Outlets Progressing Toward Profitability: Continued Margin...

Landmark Cars’ (LMC) EBITDAM, at 4.5%, was down 120bps QoQ (vs. I-Sec est.: 6.0%). Margin decline was due to lower GM on account of discounts/commissions offered on vehicle sales and higher share of new car vs. service revenue.

Landmark Cars’ (LMC) EBITDAM at 5.6%, was down 20bps QoQ, led by weaker gross margins as service revenues at new outlets is in ramp-up phase.

Landmark Cars’ (LMC) Q1FY24 EBITDA margin at 6.4% was down 70bps QoQ (I-Sec estimate: 7.3%). Margin weakness was due to lower scale with new car volumes down 30% YoY/23% QoQ at ~3.8k, led by limited supplies from key OEMs on account of BS6 phase 2 transition.

We initiate coverage on Landmark Cars (LMC) with an ADD rating and DCF-based target price of Rs766, implying multiple of 18x FY25E earnings. We believe, LMC is a direct beneficiary of the ongoing car premiumisation in India, which has resulted in a rising proportion of UVs and 10%+ CAGR in car ASP during FY21-FY23.

A proxy play on the premium automobile growth story

IPO NOTE

Issue Snapshot: Issue Open: Dec 13 Dec 15, 2022 Price Band: Rs. 481 506 (Discount of Rs 48 for all eligible employees) *Issue Size: 552.0 cr (Fresh issue of Rs 150.0 cr + Offer for sale of Rs 402.0 cr) Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 5 Book value: Rs 73.25 (June 30, 2022) Bid size: - 29 equity shares and in multiples thereof 100% Book built Issue IPO Note - Landmark Cars Limited