Why is Landmark Cars falling/rising?
As of 18-Sep, Landmark Cars Ltd's stock price is Rs 640.00, down 1.57%, with a significant drop in investor participation and weak long-term fundamentals. Despite a 19.24% return over the past month, concerns about high debt and declining profits contribute to its underperformance compared to the broader market.
As of 18-Sep, Landmark Cars Ltd is experiencing a decline in its stock price, currently at Rs 640.00, which reflects a decrease of Rs 10.2 or 1.57%. Today's price summary indicates that the stock opened with a gain of 2.25% but ultimately underperformed its sector by 1.71%. The stock reached an intraday high of Rs 664.8 but has shown a significant drop in investor participation, with delivery volume falling by 41.82% compared to the 5-day average. Additionally, while the stock has performed well over the past month with a return of 19.24%, its long-term fundamentals are weak, highlighted 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 raises concerns about its ability to service debt.In the broader market context, the Sensex has increased by 1.80% over the past week, contrasting with Landmark Cars' slight decline of 0.13% during the same period. This underperformance suggests that while the overall market is gaining, Landmark Cars is struggling to keep pace. The company's high institutional holdings at 22.45% indicate that knowledgeable investors are involved, yet the weak fundamentals, including a significant drop in profits and low return on equity, may be contributing to the stock's current downward trend. Despite trading at a discount compared to its peers, the overall negative sentiment surrounding its financial health is likely influencing its recent price movements.
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