Why is Landmark Cars falling/rising?

Aug 29 2025 10:52 PM IST
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As of 29-Aug, Landmark Cars Ltd is trading at Rs 604.50, reflecting a recent price increase and strong short-term performance, outperforming its sector. However, challenges such as weak long-term growth and high debt levels raise concerns about sustainability despite positive investor interest.
As of 29-Aug, Landmark Cars Ltd is experiencing a price increase, currently trading at Rs 604.50, which reflects a rise of Rs 23.0 or 3.96%. The stock has shown strong performance recently, outperforming its sector by 3.43% today and achieving a consecutive gain over the last three days with a total increase of 6.88%. Landmark Cars has also performed well over the past week and month, with returns of +5.19% and +21.01%, respectively, while the broader market has faced declines. Despite these positive movements, the stock is facing challenges, including weak long-term fundamental strength indicated 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.

Broader Market Context: The stock's recent performance stands in stark contrast to the benchmark, with Landmark Cars generating a return of 5.13% over the past year while the BSE500 has declined by -5.40%. This divergence highlights the stock's ability to attract investor interest despite broader market challenges. However, the falling investor participation, as evidenced by a -11.64% drop in delivery volume against the five-day average, raises concerns about the sustainability of this upward trend. Additionally, while high institutional holdings at 22.45% suggest confidence from more knowledgeable investors, the company's low profitability metrics and flat results in recent quarters may temper long-term enthusiasm.
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