Landmark Cars Reaches All-Time Low Amidst Ongoing Financial Struggles and Volatility

Landmark Cars, a small-cap player in the auto ancillary industry, has experienced significant volatility, reaching an all-time low of Rs. 388 today. The stock has underperformed its sector, declining by 1.72% and marking a consecutive two-day drop of 4.64%. Despite opening with a gain of 2.36% and hitting an intraday high of Rs. 402, the stock's overall performance remains concerning.
Over the past month, Landmark Cars has seen a decline of 15.47%, and its year-to-date performance stands at -38.03%. The company’s long-term fundamentals appear weak, with a -17.27% CAGR growth in operating profits over the last five years and a high debt-to-EBITDA ratio of 2.71 times, indicating challenges in servicing debt. The return on equity averages only 6.56%, reflecting low profitability.

Technical indicators suggest a bearish trend, with the stock trading below its moving averages across various time frames. Additionally, while institutional holdings are relatively high at 24.51%, the stock has significantly underperformed the broader market, which has seen positive returns over the past year.