Why is Landmark Cars falling/rising?
As of 26-Jun, Landmark Cars Ltd is currently priced at Rs 546.15, reflecting a recent increase but facing significant long-term challenges with a -12.89% year-to-date return and a -24.89% decline over the past year. Despite outperforming the market in the short term, the company's weak fundamentals and declining profits present a mixed outlook for investors.
As of 26-Jun, Landmark Cars Ltd is experiencing a price increase, currently at Rs 546.15, reflecting a rise of Rs 25.5 or 4.9%. The stock has shown strong performance recently, outperforming its sector by 4.57% today and gaining 7.35% over the last two days. It has also touched an intraday high of Rs 564.75, which is an increase of 8.47%. Despite this positive movement, the stock has a negative year-to-date return of -12.89% and a significant decline of -24.89% over the past year, indicating underlying challenges. The company has a fair valuation with a return on capital employed (ROCE) of 6.6, but its profits have fallen sharply by -67.2% over the past year, contributing to a mixed outlook.In the broader market context, Landmark Cars has outperformed the Sensex in the short term, with a 1-week return of +7.93% compared to the Sensex's +2.94%. However, the stock has underperformed the market over the past year, where the BSE 500 generated returns of 4.11%. The high institutional holdings at 23.45% suggest that knowledgeable investors are backing the stock, but the company's weak long-term fundamentals, including a high debt-to-EBITDA ratio and declining operating profits, raise concerns. This combination of short-term gains amidst long-term challenges creates a complex picture for investors considering the stock's future performance.
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