Landmarks Vehicles made a weak inventory market debut on Friday with its shares being listed at Rs 471 on the Nationwide Inventory Change (NSE), a reduction of seven per cent beneath its difficulty value of Rs 506. The inventory of the auto seller opened at Rs 471.30 on the BSE.
Put up itemizing, the inventory slipped 12 per cent beneath its difficulty value to Rs 446.45. On the time of penning this report, it was buying and selling at Rs 455.65, down 10 per cent in opposition to the provide value on the BSE. Compared, the S&P BSE Sensex was down 0.84 per cent at 60,314.
Landmark Vehicles is a number one premium automotive retail enterprise in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. Landmark Vehicles additionally has a industrial automobile dealership for Ashok Leyland in India. It has a presence throughout the automotive retail worth chain, together with gross sales.
The Rs 552 crore IPO of the car dealership chain was subscribed as much as 3.1 occasions with eager curiosity from institutional buyers. The targets for the recent difficulty are pre-payment of Rs 120 crore borrowings availed by subsidiaries and remaining quantity is proposed for use for basic company functions.
Landmark Vehicles is a number one automotive dealership for main OEMs with robust concentrate on excessive progress segments (premium & luxurious). The rising presence in after-sales phase is resulting in predictable progress in revenues and superior margins. Inclusive enterprise mannequin capturing complete buyer worth chain and sturdy enterprise – leveraging upon innovation and digitization are key triggers and highlights of the corporate.
“A big portion of Landmark Vehicles’ enterprise operations are concentrated in Gujarat and Maharashtra. The margins earned from providers and restore vertical could also be impacted by pricing pointers set by Landmark Vehicles OEM suppliers. The rising competitors from automotive sellers, unauthorised service centres might have an hostile influence on its enterprise. The corporate’s PV & industrial automobile gross sales are topic to seasonality are key threat & issues,” analysts at ICICI Securities stated in a word.
Primarily based on FY22 earnings, the corporate is valued at 30.3x P/E, 12.7x EV/EBITDA and 0.7x EV/Gross sales. Over the following couple of years, the premium market phase is predicted to develop at a CAGR of 10-12 per cent whereas luxurious automobile phase can be anticipated to develop at a CAGR of 14-16 per cent. Landmark is more likely to report wholesome numbers over the following couple of years led by robust progress in premium automotive phase, stated Reliance Securities in an IPO word.