Landmark Cars (LANDMARK)

FairStock Score: 19/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding at 49.76% aligns owner-manager interests
• Revenue growth of 12.56% shows business expansion
• Profit growth of 35.48% indicates recent earnings momentum
• Piotroski F-Score of 7/9 reflects improving financials
• Latest quarter is profitable with ₹14 Cr net profit on ₹1,345 Cr sales

Concerns

• Extremely high P/E of 69.02 against low ROE of 6.69%
• Thin net margin: ₹14 Cr profit on ₹1,345 Cr sales
• High debt/equity of 1.67 with ROCE of 7.99% barely covering capital cost
• PEG of 2.87 suggests growth is not cheap; dividend yield is negligible at 0.12%

AI Analysis

As a value investor, I find little here to excite me. Landmark Cars is an auto dealer—an asset-heavy, low-margin business. Latest quarter net profit is ₹14 Cr on ₹1,345 Cr sales, a margin near 1%. That leaves no cushion. Return on equity is 6.69%, and ROCE is only 7.99%; with debt/equity of 1.67, that return is not strong enough to compensate for leverage. The company is profitable, and Piotroski F-score of 7/9 suggests recent operational improvement. Sales grew 12.56% and profit grew 35.48%, but from a thin base. The problem is valuation: P/E is 69.02, price is 3.14 times book value, and PEG at 2.87 tells me I am not paying a reasonable price for growth. Dividend yield of 0.12% is almost nothing for a shareholder waiting. Promoter holding 49.76% is decent, but ownership alone does not create a moat. Dealerships generally lack pricing power; they are exposed to cycles, inventory, and working capital stress. FairStock score of 12/100 reinforces my caution. Even a good business at a fancy price becomes a bad investment. Here I have a cyclical, capital-hungry dealer with thin margins and high leverage. Benjamin Graham would ask for a margin of safety, and at ₹416.75 I do not see one. The stock trades well below its 52-week high of ₹662.80, but that only means the crowd left; it does not mean the price is cheap. I would prefer to watch from the sidelines until either earnings power improves meaningfully, debt falls, or the price drops to a level where the balance sheet and earnings provide real protection. No rush.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer