Valuation Metrics: From Expensive to Fair
As of 12 Feb 2026, Landmark Cars Ltd trades at a P/E ratio of 75.44, a figure that, while still high, has improved enough to shift its valuation grade from 'expensive' to 'fair' according to MarketsMOJO’s latest assessment. The price-to-book value stands at 3.40, signalling a premium over the book value but less stretched than in previous quarters. This reclassification follows a comprehensive review of the company’s earnings trajectory, capital structure, and market conditions.
The enterprise value to EBITDA (EV/EBITDA) ratio is 11.04, which is moderate relative to the automobile sector, indicating that the company’s operational earnings are being valued at a reasonable multiple. However, the EV to EBIT ratio remains elevated at 28.04, suggesting some caution among investors regarding profitability sustainability.
Comparative Peer Analysis
When benchmarked against key industry peers, Landmark Cars’ valuation metrics reveal a mixed picture. TVS Holdings, rated as 'attractive', trades at a P/E of 20.03 and an EV/EBITDA of 7.04, significantly lower than Landmark’s multiples, highlighting its relative undervaluation. Conversely, companies such as ZF Commercial and Motherson Wiring remain 'expensive' with P/E ratios of 59.95 and 46.16 respectively, and EV/EBITDA multiples well above 25, underscoring the premium investors place on their earnings.
Other peers like Gabriel India and JBM Auto also maintain expensive valuations, with P/E ratios of 57.11 and 66.00 respectively, and EV/EBITDA multiples exceeding 26. This context places Landmark Cars in a middle ground, where its valuation is neither the most expensive nor the most attractive, but trending towards fair value.
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Financial Performance and Returns
Landmark Cars’ return metrics over various periods reveal a challenging performance relative to the broader market. Year-to-date (YTD), the stock has declined by 2.45%, slightly underperforming the Sensex’s 1.16% fall. Over the past year, the stock has dropped 2.34%, while the Sensex gained a robust 10.41%. The three-year return is particularly concerning, with Landmark Cars down 28.74% compared to the Sensex’s 38.81% gain, highlighting persistent headwinds in the company’s growth and profitability.
Despite these setbacks, the stock has shown resilience in the short term, with an 8.15% gain over the past week, significantly outperforming the Sensex’s 0.50% rise. This recent momentum may reflect improving investor sentiment or technical buying interest, but the longer-term trend remains subdued.
Profitability and Efficiency Metrics
Profitability ratios remain modest, with the latest return on capital employed (ROCE) at 6.90% and return on equity (ROE) at 3.74%. These figures are below industry averages, indicating that Landmark Cars is yet to fully capitalise on its asset base and equity to generate superior returns. The dividend yield is minimal at 0.11%, suggesting limited income appeal for dividend-focused investors.
The company’s EV to capital employed ratio of 2.00 and EV to sales of 0.57 further illustrate a valuation that is not overly stretched relative to its sales and capital base, supporting the recent shift to a fair valuation grade.
Mojo Score and Market Sentiment
MarketsMOJO’s proprietary Mojo Score for Landmark Cars currently stands at 34.0, with a Mojo Grade of 'Sell', upgraded from a previous 'Strong Sell' on 13 Nov 2025. This upgrade reflects a marginal improvement in the company’s fundamentals and valuation attractiveness, though the overall sentiment remains cautious. The market capitalisation grade is low at 3, indicating a smaller market cap relative to peers, which may contribute to higher volatility and risk perception among investors.
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Price Action and Trading Range
Landmark Cars closed at ₹460.95 on 12 Feb 2026, up from the previous close of ₹439.70, marking a 4.83% increase on the day. The stock traded within a range of ₹436.65 to ₹467.25, indicating healthy intraday volatility. Over the past 52 weeks, the stock has seen a high of ₹674.70 and a low of ₹306.05, reflecting a wide trading band and significant price swings.
This volatility underscores the stock’s sensitivity to sectoral developments and company-specific news, making it a stock that requires careful monitoring for investors seeking entry or exit points.
Outlook and Investment Considerations
While Landmark Cars’ valuation has improved from expensive to fair, the elevated P/E ratio of 75.44 remains a concern, especially when juxtaposed with modest profitability metrics and subdued long-term returns. The company’s ROCE and ROE suggest that operational efficiency and shareholder returns have yet to reach compelling levels, which may limit upside potential in the near term.
Investors should weigh the recent positive price momentum against the broader industry challenges and Landmark’s relative underperformance versus the Sensex. The upgrade in Mojo Grade to 'Sell' from 'Strong Sell' signals cautious optimism but stops short of a buy recommendation, reflecting the need for further fundamental improvements before a more favourable outlook can be endorsed.
Comparative analysis with peers such as TVS Holdings, which offers more attractive valuation multiples and stronger earnings prospects, may guide investors towards better risk-adjusted opportunities within the automobile sector.
Conclusion
Landmark Cars Ltd’s shift in valuation grading from expensive to fair marks a significant development in its market narrative, suggesting that the stock is becoming more price-attractive relative to its historical levels. However, the company’s high P/E ratio, modest returns, and underwhelming long-term performance relative to the Sensex temper enthusiasm. Investors should remain vigilant, considering both the improving valuation landscape and the persistent operational challenges before committing fresh capital.
Given the current metrics and market context, Landmark Cars remains a cautious hold or sell candidate, with better-valued and higher-quality peers available for those seeking exposure to the automobile sector.
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