Landmark Cars Adjusts Valuation Amid Flat Financial Performance and High Debt Concerns

Landmark Cars, a small-cap player in the auto ancillary industry, has recently undergone an adjustment in evaluation, reflecting changes in its financial and technical metrics. The company's financial performance for the quarter ending June 2025 has been characterized as flat, with net sales reaching Rs 2,152.94 crore, marking a growth of 26.95%. However, the profit after tax (PAT) for the latest six months stands at Rs 8.47 crore, indicating a decline of 40.33% compared to previous periods.
On the technical front, the stock's trend has shifted from sideways to mildly bullish, with indicators such as the MACD and Bollinger Bands showing bullish signals on a weekly basis. The valuation metrics also suggest a transition from an expensive to a fair valuation, with a price-to-earnings (PE) ratio of 99.35 and an enterprise value to EBITDA of 13.02.

Despite these adjustments, Landmark Cars faces challenges, including a high debt-to-EBITDA ratio of 3.24 times and a five-year CAGR growth in operating profits of -17.40%. The company’s return on equity averages 7.11%, reflecting low profitability per unit of shareholders' funds.

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