Why is Landmark Cars falling/rising?
As of 22-Sep, Landmark Cars Ltd is priced at 617.30, down 0.46% and has underperformed recently with a total drop of 5.06% over three days. Despite a positive one-month return of 7.41%, the stock faces challenges from declining profits and weak fundamentals, contributing to its current downward trend.
As of 22-Sep, Landmark Cars Ltd is currently priced at 617.30, reflecting a decline of 2.85 points or 0.46%. The stock has been underperforming recently, having fallen consecutively for the last three days, resulting in a total drop of 5.06%. Despite reaching an intraday high of Rs 638.5 earlier in the day, the stock's performance today has lagged behind its sector by 0.35%. Over the past week, Landmark Cars has seen a significant decline of 6.75%, while its one-month return stands at a positive 7.41%. However, the stock's year-to-date performance shows a decrease of 1.55%. The company has a high institutional holding of 22.45%, which may indicate confidence from larger investors, but it also faces challenges such as a 57.9% drop in profits over the past year and a weak long-term fundamental strength characterized by a -17.40% CAGR growth in operating profits over the last five years.In the broader market context, the Sensex has shown a slight increase of 0.46% over the past week, contrasting with Landmark Cars' significant decline. While the stock has been trading at a discount compared to its peers' average historical valuations, its weak financial metrics, including a high Debt to EBITDA ratio of 3.24 times and a low average Return on Equity of 7.11%, raise concerns about its long-term viability. The company's flat results in June, with a notable decrease in profit after tax, further contribute to the negative sentiment surrounding the stock. Overall, the combination of recent poor performance, weak fundamentals, and the broader market's positive trajectory may explain the stock's current downward trend.
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