Why is Landmark Cars falling/rising?
As of 28-Aug, Landmark Cars Ltd is currently priced at Rs 581.50, reflecting a recent increase and outperforming its sector. However, the company has weak long-term fundamentals, including declining operating profits and high debt levels, which may raise concerns for investors despite recent positive stock performance.
As of 28-Aug, Landmark Cars Ltd is experiencing a price increase, currently at Rs 581.50, which reflects a rise of Rs 6.95 or 1.21%. The stock has shown positive momentum, having outperformed its sector by 1.34% today and achieving a consecutive gain over the last two days with a total return of 2.81%. Additionally, the stock has performed well over the past month, with a return of 17.44%, while the one-week performance shows a modest increase of 1.58%. However, it is important to note that the company has a weak long-term fundamental strength, evidenced by a -17.40% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 3.24 times, which could be a concern for investors.In the broader market context, while Landmark Cars has been rising, the benchmark Sensex has seen a decline of 2.34% over the past week and a decrease of 1.00% over the past month. This indicates that the stock is performing well relative to the overall market. Despite the recent positive price movement, the company faces challenges such as a low return on equity of 7.11% and a significant drop in profits over the past year, which fell by 57.9%. The high institutional holdings at 22.45% suggest that knowledgeable investors are backing the stock, but the overall weak fundamentals may temper long-term confidence.
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