Why is Landmark Cars falling/rising?
As of 25-Jun, Landmark Cars Ltd is currently valued at Rs 520.65, reflecting a recent price increase but a significant year-over-year decline of 28.12%. Despite short-term gains, the company's long-term outlook is concerning due to substantial profit drops and high debt levels.
As of 25-Jun, Landmark Cars Ltd is experiencing a price increase, currently valued at Rs 520.65, reflecting a rise of Rs 11.9 or 2.34%. The stock has shown a positive trend today, outperforming its sector by 0.44% and reversing a two-day decline. Over the past week, it has gained 6.26%, and in the last month, it has risen by 16.89%. However, despite this recent uptick, the stock has significantly underperformed over the year, with a decline of 28.12%. The company has a fair valuation with a return on capital employed (ROCE) of 6.6, but it has also seen a substantial drop in profits by 67.2% over the past year, which may weigh on investor sentiment.In the broader market context, the Sensex has increased by 1.61% over the past week and 1.27% over the past month, indicating that while Landmark Cars is rising, it is doing so at a pace that exceeds the benchmark. Despite high institutional holdings at 23.45%, which typically indicate confidence from knowledgeable investors, the company faces challenges such as a high debt-to-EBITDA ratio and weak long-term fundamental strength, with a CAGR growth in operating profits of -22.40% over the last five years. This combination of factors suggests that while there is short-term momentum, the long-term outlook remains concerning, potentially leading to volatility in the stock's performance.
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