Why is Landmark Cars falling/rising?
As of 15-Jul, Landmark Cars Ltd is priced at Rs 526.95, down 3.14%, and has underperformed its sector and the broader market significantly over the past year. Despite a recent positive return of 3.10% over the week, the company faces weak fundamentals, including a drastic profit decline and high debt levels, which hinder investor confidence.
As of 15-Jul, Landmark Cars Ltd is currently priced at Rs 526.95, reflecting a decrease of Rs 17.1 or 3.14%. Today, the stock has underperformed its sector by 4.8%, with an intraday high of Rs 564.9 and a low of Rs 526.95. Over the past week, the stock has shown a positive return of 3.10%, but it has significantly underperformed over the past year with a return of -16.72%. The company has a fair valuation with a return on capital employed (ROCE) of 6.6, but its profits have fallen drastically by 67.2% over the past year. Additionally, the company has a high debt to EBITDA ratio of 3.24, indicating a low ability to service its debt, which contributes to its weak long-term fundamental strength.In the broader market context, while the Sensex has generated a return of 5.67% year-to-date, Landmark Cars has seen a decline of 15.96% in the same period, highlighting its underperformance relative to the market. Despite a rise in investor participation, as indicated by a significant increase in delivery volume, the stock's negative results, including a 77.8% drop in profit after tax in the last quarter, have overshadowed these positive signs. The stock's performance over the last year, alongside its weak fundamentals, suggests that it is struggling to attract investor confidence compared to the broader market trends.
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