Rating Overview and Context
On 13 Nov 2025, MarketsMOJO revised Landmark Cars Ltd’s rating from 'Sell' to 'Strong Sell', reflecting a significant deterioration in the company’s overall investment appeal. The Mojo Score dropped sharply by 21 points, from 38 to 17, signalling heightened concerns about the stock’s prospects. This rating serves as a cautionary signal for investors, indicating that the stock currently exhibits weak fundamentals, expensive valuation, flat financial trends, and bearish technical indicators.
Here’s How Landmark Cars Ltd Looks Today
As of 07 February 2026, Landmark Cars Ltd remains a small-cap player in the automobile sector, with a market capitalisation reflecting its modest scale. The company’s financial and operational performance continues to show signs of stress, which underpin the current 'Strong Sell' rating.
Quality Assessment
The quality grade for Landmark Cars Ltd is below average, highlighting persistent challenges in its core business operations. Over the last five years, the company has experienced a negative compound annual growth rate (CAGR) of -11.76% in operating profits, signalling a sustained decline in profitability. This weak long-term fundamental strength is further compounded by a high Debt to EBITDA ratio of 3.30 times, indicating a strained ability to service debt obligations. Additionally, the average Return on Equity (ROE) stands at a low 5.16%, reflecting limited profitability generated from shareholders’ funds. These factors collectively suggest that the company’s operational efficiency and financial health remain under pressure.
Valuation Considerations
Currently, Landmark Cars Ltd is considered expensive relative to its capital employed, with a Return on Capital Employed (ROCE) of 6.9% and an Enterprise Value to Capital Employed ratio of 1.9. Although the stock trades at a discount compared to its peers’ historical valuations, this valuation does not compensate adequately for the company’s deteriorating earnings and weak fundamentals. The expensive valuation grade reflects the market’s cautious stance, given the company’s flat financial trends and declining profitability.
Financial Trend Analysis
The financial grade is flat, indicating stagnation rather than growth. The latest quarterly results for September 2025 reveal troubling signs: Profit Before Tax excluding other income (PBT LESS OI) fell sharply by 199.2% to a loss of ₹4.29 crores compared to the previous four-quarter average. Net Profit After Tax (PAT) also declined by 78.7% to ₹1.19 crores. Notably, non-operating income accounted for an outsized 803.28% of PBT, suggesting that core business profitability is weak and reliant on irregular income sources. Over the past year, the company’s profits have contracted by 40.6%, while the stock price has declined by 20.67%, underscoring the negative financial trajectory.
Technical Outlook
The technical grade for Landmark Cars Ltd is bearish, reflecting negative momentum in the stock price. The stock has underperformed the BSE500 benchmark consistently over the last three years, with annual returns lagging each period. Recent price movements show a 1-day decline of 1.21%, a 1-month drop of 10.96%, and a 3-month fall of 32.34%. Even the 1-week performance, which shows a modest 6.51% gain, is insufficient to offset the broader downtrend. This bearish technical stance suggests limited near-term recovery potential and heightened risk for investors.
Implications for Investors
The 'Strong Sell' rating from MarketsMOJO signals that Landmark Cars Ltd currently presents significant risks for investors. The combination of weak quality metrics, expensive valuation, flat financial trends, and bearish technical indicators suggests that the stock is unlikely to deliver positive returns in the near term. Investors should approach the stock with caution, considering the company’s ongoing operational challenges and deteriorating profitability. This rating advises a defensive stance, favouring capital preservation over speculative exposure.
Stock Returns and Market Performance
As of 07 February 2026, Landmark Cars Ltd’s stock returns have been disappointing. The stock has generated a negative return of 20.67% over the past year, significantly underperforming the broader market. Year-to-date, the stock is down 12.71%, and over six months it has declined by 19.60%. These returns reflect the company’s fundamental and technical weaknesses and reinforce the rationale behind the current rating.
Momentum building strong! This Mid Cap from NBFC is on our MomentumNow radar. Other investors are catching on – will you join?
- - Building momentum strength
- - Investor interest growing
- - Limited time advantage
Summary
In summary, Landmark Cars Ltd’s current 'Strong Sell' rating reflects a comprehensive assessment of its weak operational quality, expensive valuation relative to returns, flat financial trends, and bearish technical outlook. The company’s inability to generate consistent profits, coupled with high leverage and poor returns on equity, undermines investor confidence. The stock’s persistent underperformance against benchmarks and negative returns over multiple time frames further justify a cautious approach. Investors should carefully consider these factors before allocating capital to Landmark Cars Ltd, as the risks currently outweigh potential rewards.
Looking Ahead
While the current outlook remains challenging, investors monitoring Landmark Cars Ltd should watch for any meaningful improvements in operating profitability, debt servicing capacity, and technical momentum. A turnaround in these key areas would be necessary to warrant a reassessment of the stock’s rating. Until then, the 'Strong Sell' recommendation serves as a prudent guide for managing risk in this automobile sector small-cap.
Unlock special upgrade rates for a limited period. Start Saving Now →
