Landmark Cars Ltd is Rated Strong Sell

Understanding the Current Rating

The Strong Sell rating assigned to Landmark Cars Ltd indicates a cautious stance for investors, signalling significant concerns across multiple dimensions of the company’s health. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s attractiveness and risk profile in the current market environment.

Quality Assessment

As of 25 December 2025, Landmark Cars Ltd’s quality grade is categorised as below average. The company has demonstrated weak long-term fundamental strength, with a compounded annual growth rate (CAGR) in operating profits of -11.76% over the past five years. This negative growth trend highlights challenges in sustaining profitability and operational efficiency. Additionally, the company’s ability to service debt is limited, evidenced by a high Debt to EBITDA ratio of 3.30 times, which raises concerns about financial leverage and solvency risks.

The return on equity (ROE) averaged 5.16%, signalling low profitability relative to shareholders’ funds. This modest ROE suggests that the company is generating limited value for its investors, which is a critical factor in the quality evaluation.

Valuation Considerations

Currently, Landmark Cars Ltd is considered expensive relative to its capital employed, with an enterprise value to capital employed ratio of 2.1. The return on capital employed (ROCE) stands at 6.9%, which, when juxtaposed with the valuation metrics, indicates that the stock is priced at a premium despite subdued returns. While the stock trades at a discount compared to its peers’ average historical valuations, this relative valuation does not offset the concerns arising from its financial performance and growth outlook.

Financial Trend Analysis

The financial trend for Landmark Cars Ltd is currently flat, reflecting stagnation in key profitability metrics. The latest quarterly results ending September 2025 reveal a sharp decline in profit after tax (PAT), which fell by 78.7% to ₹1.19 crore compared to the previous four-quarter average. Profit before tax excluding other income (PBT less OI) was negative at ₹-4.29 crore, underscoring operational challenges.

Non-operating income accounted for an outsized 803.28% of profit before tax, indicating that the company’s core business is underperforming and relying heavily on non-recurring or ancillary income sources. Over the past year, the stock has delivered a negative return of -20.81%, while profits have contracted by -40.6%, signalling deteriorating earnings quality and investor returns.

Technical Outlook

The technical grade for Landmark Cars Ltd is mildly bearish as of 25 December 2025. The stock’s price performance has been weak across multiple time frames: a 1-day decline of -1.32%, a 1-week drop of -6.79%, and a 1-month fall of -10.95%. Over three months, the stock has lost -21.53%, and the year-to-date return stands at -23.41%. This underperformance extends to longer periods as well, with the stock lagging the BSE500 index over the last three years, one year, and three months.

Adding to the negative technical sentiment is the reduction in promoter confidence. Promoters have decreased their stake by 1.75% in the previous quarter, now holding 49.81% of the company. Such a decline in promoter holding often signals diminished faith in the company’s future prospects, which can weigh heavily on investor sentiment and share price momentum.

Implications for Investors

For investors, the Strong Sell rating on Landmark Cars Ltd serves as a cautionary signal. The combination of below-average quality, expensive valuation relative to returns, flat financial trends, and bearish technical indicators suggests that the stock currently carries elevated risks. The company’s inability to generate consistent profit growth, coupled with weakening promoter confidence, further compounds these concerns.

Investors should carefully consider these factors before initiating or maintaining positions in Landmark Cars Ltd. The stock’s recent performance and fundamental challenges imply that capital preservation may be a priority, and opportunities for meaningful appreciation appear limited under current conditions.

Summary of Key Metrics as of 25 December 2025

• Mojo Score: 23.0 (Strong Sell)


• Market Capitalisation: Smallcap


• Quality Grade: Below Average


• Valuation Grade: Expensive


• Financial Grade: Flat


• Technical Grade: Mildly Bearish


• Debt to EBITDA Ratio: 3.30 times


• Return on Equity (avg): 5.16%


• Return on Capital Employed: 6.9%


• Enterprise Value to Capital Employed: 2.1


• 1-Year Stock Return: -20.81%


• Profit Decline Over Past Year: -40.6%


• Promoter Holding: 49.81% (down 1.75% last quarter)

In conclusion, Landmark Cars Ltd’s current Strong Sell rating reflects a comprehensive assessment of its financial health, valuation, and market performance as of today. Investors are advised to weigh these factors carefully in their portfolio decisions.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →