Why is Landmark Cars falling/rising?
As of 17-Jul, Landmark Cars Ltd is currently priced at 539.60, reflecting a recent increase but a year-to-date decline of 13.94%. Despite short-term outperformance against the Sensex, concerns about long-term fundamentals and decreased delivery volume suggest potential challenges ahead.
As of 17-Jul, Landmark Cars Ltd is experiencing a price increase, currently at 539.60, reflecting a rise of 6.2 or 1.16%. The stock has shown positive momentum, having outperformed its sector by 0.97% today and achieving consecutive gains over the last two days, with a total return of 2.4% during this period. Despite a year-to-date decline of 13.94% and a one-year drop of 17.81%, the stock is trading above its moving averages across various time frames, indicating a potential recovery. However, it is important to note that the delivery volume has decreased significantly, falling by 44.88% against the five-day average, which may suggest weakening investor participation.In the broader market context, while Landmark Cars has outperformed the Sensex in the short term with a one-week return of 5.32% compared to the benchmark's -1.12%, it has underperformed over the longer term, with a year-to-date return significantly lower than the market average of 5.27%. The company has high institutional holdings at 23.45%, which may provide some stability and confidence among investors. However, the stock's weak long-term fundamentals, including a -22.40% CAGR growth in operating profits over the last five years and a high debt-to-EBITDA ratio, raise concerns about its sustainability. Additionally, the significant drop in profits by 67.2% over the past year further complicates its outlook, despite being valued at a discount compared to peers.
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