Landmark Cars Limited

Consumer Cyclical — Auto & Truck Dealerships · NSE

₹466.00+₹9.40 (+2.06%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Landmark Cars Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Landmark Cars Limited engages in the automotive retail business in India. It provides dealership services for Mercedes-Benz, BYD, MG Motor, Mahindra & Mahindra, Kia, Honda, Renault, Volkswagen, Jeep, Citroën and Ashok Leyland.

IndustryAuto & Truck Dealerships

SectorConsumer Cyclical

Employees5,120

Annual revenue₹4,694 Cr

How does it make money?

Turns over ₹4,694 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 5,120 employees supports ₹91.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin6.0%

Net margin0.8%

Revenue / employee₹91.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE13.0%

ROE6.4%

Peer median ROE25.9%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 14.3% and earnings to grow about 40.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.3%

Est. earnings growth+40.8%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +43% while net margin moved -69% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+43%

Margin effect-69%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 6.4% is weak
✗ ROE has fallen by 11.6 points over the period

Quality vs. Valuation

Company Quality

38/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

61/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

42.9x

3Y Median

43.8x

40 monthly readings · mean 64.5x · range 27.3x–162.7x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 43.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 38% below the peer median of 69.2x.

vs. its own history

Fair

43.8x median over 40 months · -2%

vs. sector peers

Cheap

69.2x median of 4 peers · -38%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

42.9x

P/B

3.30x

EV/EBITDA

10.3x

PEG

—

Dividend Yield

0.32%

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 7.5% to 6.0% over 3 years.
Debt is rising
Total debt is up 99% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 18.0% to 6.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.7% to 13.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 99% over 3 years, from ₹509 Cr to ₹1,015 Cr.
🔴High leverageFinancial
Debt/Equity of 1.74x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 56% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 38% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 7.5% to 6.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 18.0% to 6.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 12.6% CAGR
Latest reported year was 22.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹203 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹1,932 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.30x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.85

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.74x

High

High leverage

Revenue Growth (YoY)

22.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

110.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.32%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹203 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹466

P/E (Forward)

14.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

479.0 / 499.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,288 Cr	₹3,167 Cr	₹3,856 Cr	₹4,694 Cr	+12.6%
EBITDA	₹248 Cr	₹228 Cr	₹235 Cr	₹283 Cr	+4.5%
EBITDA Margin	7.5%	7.2%	6.1%	6.0%	—
PAT (Net Profit)	₹84 Cr	₹56 Cr	₹16 Cr	₹37 Cr	-23.8%
EPS	₹21.74	₹13.77	₹3.85	₹9.01	-25.4%
ROE	18.0%	10.4%	2.9%	6.4%	—
ROCE	21.7%	14.6%	10.3%	13.0%	—
Total Debt	₹509 Cr	₹725 Cr	₹972 Cr	₹1,015 Cr	+25.9%
Free Cash Flow	-₹1 Cr	-₹44 Cr	₹15 Cr	₹203 Cr	—

🟢 Revenue has grown at 12.6% a year over 3 years.

🟢 EBITDA has grown at 4.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.5% to 6.0% over 3 years (-1.5 pts).

🔴 PAT (Net Profit) has shrunk at 23.8% a year over 3 years.

🔴 EPS has shrunk at 25.4% a year over 3 years.

🔴 ROE has fallen from 18.0% to 6.4% over 3 years (-11.6 pts).

🔴 ROCE has fallen from 21.7% to 13.0% over 3 years (-8.7 pts).

🔴 Total Debt has grown at 25.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹203 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,979 Cr

Total Liabilities

₹1,395 Cr

Total Debt

₹1,015 Cr

Cash & Equivalents

₹36 Cr

Operating Cash Flow

₹267 Cr

Capex

-₹65 Cr

Shareholding (proxy)

Institutional Holding

20.0%

Insider Holding

53.5%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

17 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹621.67

+33.4% vs CMP

Target Range

₹550 – ₹735

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Landmark Cars (NSEI:LANDMARK) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Landmark Cars surges 12% on huge volume in weak market; here's why

Business Standard, 29 Sept

Landmark Cars vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Landmark Cars shares zoom up to 12% to hit one-month high on M&M, BYD store additions

Moneycontrol.com, 29 Sept

Landmark Cars Share Price Tanks 8% After Q1 Results Even As Stock Gained 26% In One Month

NDTV Profit, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Landmark Cars shares rally upto 13% post Q1 business update, revenue jumps over 22%

The Economic Times, 15 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🔴Financial HealthStretched8.6/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair6.9/15

🔴RiskHigh3.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 9% a year12.6% CAGR
✓EBITDA margin holds above 4%6.0%
✗Debt / EBITDA falls below 3x3.6x
✗Interest cover stays above 3x1.6x
✓Free cash flow remains positive₹203 Cr