Why is Landmark Cars falling/rising?
As of 13-Aug, Landmark Cars Ltd's stock price has risen to 530.00, up 10.23%, but it has a troubling -11.60% return over the past year and significant debt challenges. Despite short-term outperformance against the Sensex, long-term fundamentals remain weak, raising concerns about its viability.
As of 13-Aug, Landmark Cars Ltd is experiencing a significant rise in its stock price, currently at 530.00, reflecting an increase of 49.2 or 10.23%. The stock opened with a notable gain of 13.77% today and reached an intraday high of Rs 547. It has outperformed its sector by 8.61% today, and trading volumes have increased, with delivery volume rising by 135.02% against the 5-day average. However, despite this positive movement, the stock has generated a return of -11.60% over the past year, with profits declining by 67.2%. The company has a high Debt to EBITDA ratio of 3.24 times, indicating challenges in servicing debt, and a weak long-term fundamental strength with a -22.40% CAGR growth in operating profits over the last five years.In the broader market context, Landmark Cars has outperformed the Sensex in the short term, with a 1-week return of +3.30% compared to a flat performance of -0.01% for the benchmark. However, the stock's year-to-date performance is concerning, showing a decline of -15.47% against the Sensex's positive return of +3.07%. High institutional holdings at 22.45% suggest that more knowledgeable investors are backing the stock, which may contribute to the recent price increase. Nonetheless, the company's flat results in June and the high proportion of non-operating income relative to profit before tax raise questions about its long-term viability, indicating that while the stock is rising in the short term, underlying fundamental issues remain a concern.
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