Landmark Cars - Listed premium Car dealership in India

Leading and only listed car & CV seller in India - deals in luxury car segment (Merc, Jeep, VW, Honda, BYD & Ashok Leyland(CV)) - Company exiting Renault cars as renault has future plans to launch cars in affordable low price segment. Landmark want to focus on premium & Luxury segment.

Overall market- India has become 3rd largest car market in the world and growing at good CAGR owing to increasing purchasing capacity. Shift towards high end cars is clearly visible as sales of SUV segment is growing rapidly. People are looking beyond Maruti Suzuki & Tata cars.

Share of BYD is abnormal as it is new entrant in Inida (Landmark owns showrooms in Delhi & Mumbai areas for BYD).

Business Sub-segments:

  1. New Car Sales: Low margin / medium-high growth business

  2. Service : Growing at 20% + CAGR, Kind of annuity business as premium vehicles mostly gets serviced at authorized centers only (as per concall 50% + footfall even after 5 years of selling), ALso holds exclusive license for few premium accessories like permaguard & motorone car care brands

  3. Allied business - Insurance & financial products, Second hand car sales - Low margin & low revenue business


  1. Entire bet is on growing band & disposable income of Indian higher middle & higher class.
  2. Shift of people from economic to premium/luxury cars
  3. Higher use of electronics in cars will make sure, cars are serviced/repaired at authorized centers only
  4. High sales numbers will widen the annuity service segment revenue for next few years (at least 5)


  1. Discretionary spending product - recession/low growth will hit hard on business
  2. Attached Brands don’t perform as good as rival brands (Hyundai is gaining market share but Honda is losing share.
  3. High working Capital requirement as they buy from company & then sell to customers except Merc (model changed in 2022- now company directly bill in name of customer & dealer gets his share of commission, helpful in improving WC of dealer)

Disc: tracking position


Please change the name. This is not the first auto dealership listed company in India. There are many like Spectra Industries which are listed on stock exchanges.

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Actually it is. Spectra is an illiquid stock with market cap of 3 cr.

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Landmark cars Q1 concall highlights -

Sales- 694 vs 800 cr
EBITDA- 44 vs 51 cr ( margins constant @ 6.4 pc )
PAT- 7.3 vs 18 cr

Indian auto Industry grew by 10 pc YoY despite a high base

The company’s OEMs - VW, Honda, Mercedes, Renault, MG did not participate in Q1’s growth

Second Qtr onwards, sales may be pickup due -

1.Launch of Mercedes GLC which has received bookings (>1500 cars) amounting to aprox 1200 cr

2.Launch of Honda Elevate which is seeing very good customer response. Honda sales de-grew 37 pc in Q1 due discontinuation of Jazz, WRV

  1. Start of MG Motors operations in Q2 at Bhopal and Indore

  2. Have started receiving BYD cars which were stuck up for over 2 months

  3. Launch of Jeep’s new 4x2 Diesel version

After sales business continues to be strong

Have started a new business of selling pre owned cars

Avg selling price of new cars at 19.5 vs 15.6 LY

Avg cost of servicing/car is also up 9 pc vs LY

Gross margins @ 15 pc (sales + service + sale of pre owned cars)

Aim to hit 100 cr sales from the sale of pre owned cars this yr

Management believes, they can make money here from sale of 1st car onwards as no new infra / manpower is being employed here

In active conversation with MG Motors for allotment of new locations. Awaiting clarity on selection of their Indian partner before going ahead

Jeep India’s management has changed and they have a renewed focus on India. Jeep’s numbers likely to recover to 800-900 units/month and with Jeep’s avg selling price, that’s a good business

Renault going to launch new models in about 16-18 months

Renault providing financial support to Landmark in the interim

VW opening low cost/small outlets in Gujarat through Landmark to drive incremental sales

Once the company is able to crack the pre-owned car sales business in a profitable way, they can easily & quickly scale up

Currently, BYD is allowed to import only 2500 cars / year in CKD format. Even this is a profitable business as the Margins here are high. Company may go ahead with an Indian partner to expand its manufacturing footprint in India

Company is expecting to get advance bookings for 700-800 Elevate car units. That should amount to Aprox 100 cr sales (rough calculation)

Company’s share in various OEM’s India sales -

Mercedes- 16 pc
Honda- 6 pc
Jeep- 26 pc
VW- 10 pc
Renault- 5 pc

New partnerships - BYD, MG, Ashok Leyland

Disc: hold a tracking position