Aadhar - This is quite helpful. If you are doing it regularly, I suggest you do it on Google Sheets and share the link over here.
It’s important to track these announcements. Thanks for doing this.
Also, wanted to know - what’s the point of ‘No of Investor Tracking’. How does that affect the performance and where do you get that data?
PAT negative growth q1 fy25 yoy instead of positive sale growth why ? Please give your suggestion
Over the past year, new outlets have been added, with plans to open more this year to strengthen presence in existing areas and expand into new regions. However, it will take time for these outlets to reach full operational capacity, which is currently contributing to a lower operating profit margin. Additionally, these new outlets have led to higher depreciation and interest expenses, resulting in a year-over-year decline in PBT.
Hit of ebitda because of new showrooms is understandable.
But one issue that i see with Landmark is their low PAT/ EBITDA to CFO (adjusted for financial liabilities) conversion for last 3-4 yrs.
Further with MB’ share in revenue increasing, need of funds for inventory should have been rather reducing.
Landmark Cars | Business Update
Workshops Update:
Crux of the business is documented well in the starting post. But few more thoughts from my side:
Wealth Accumulation - As people get richer, and get higher disposable income, spending tends to go to discretionary items (e.g. Luxury Cars). China can be the closest proxy to study how sales of luxury cars exploded when income level reached a threshhold. Will it happen in India, time will tell.
But if you want to play that theme, Lankmark is one of the options.
Multi Brand - Landmark has dominant market share of top 5 brands in its bucket (Mercedes, Honda, Jeep, Volkswagon). Betting on landmark means you are not betting on single brand, and your risk is diversified. Multibrand tailwind is Dealer’s tailwind.
Negatives -
Base rate (Probability of success) can be in your favor, if :
Dont ask me my opinion about the above, as I am yet to make my views about these points.
Disclosure - Not invested
Landmark Cars | Q3FY25 Highlights
Opened 23 new outlets in 9MFY25
I strongly believe for landmark to generate meaningfull growth , the service realisation as a percentage of total revenue need to grow. Currently it is around 17%. Along with the showrooms, they need to start workshops and increase the share of services. Untill then margins will be suppressed.
Yes in my city Hyderabad, Landmark has opened almost 4 show rooms of mahindra and I am able to see their footprint in Kia, byd also expanding now.
But It’s good to see they are coming to low-cost cars bcz the majority of people will be interested in buying low-end cars for less than 20 lakhs.
certainly I’m very much positive about this space and took my fresh entry around 530. worth considering for long-term and its valuations are much attractive post correction.
I own a car bought from Landmark & they have my servicing contract.
A competing official dealership of the OEM called a family member and lied that the servicing has now shifted to them. (Data probably shared by OEM)
During servicing they raised some absurd “Additional Servicing & Repair Costs” requirement which was bought to my attention. I called Landmark after that and realised that my contract was still with them.
While my issue has been resolved for now - but this shows how VULNERABLE/Non-Existent the MOAT of the company is!
Q3 results indicate a slowdown in luxury vehicle sales, while entry-level and premium segments are seeing strong growth.For Popular Vehicles and Services Q3 preview, revenue growth is expected to be around 40% & 50% volume growth. Key point to watch is whether this growth is sustainable or largely driven by pent up demand following the GST cut.
Multi-brand dealership model has massive growth potential when compared to the evolution of similar companies at a global level. The Indian auto retail market is currently highly fragmented and sits at an inflection point similar to where markets like China and the United States were decades ago.
When comparing Landmark Cars’ model to global benchmarks, several key factors indicate substantial headroom for growth:
1. Headroom for Market Share Expansion In mature automotive markets like China and the U.S., the largest corporate auto retailers typically hold between 1.5% to 2% of the total passenger vehicle (PV) industry volumes. In contrast, Landmark currently holds approximately 0.5% market share by volume (and ~0.8% by value) in India. As the Indian market itself grows in absolute size, the company aims to double its market share to match these global benchmarks, which would translate to exponential revenue growth.
2. Global OEM Preference for Consolidation Globally, Original Equipment Manufacturers (OEMs) strongly prefer dealing with a smaller number of large, financially strong, and professionally managed corporate retail partners rather than highly fragmented, family-run dealerships.
For example, in some Asian countries like Korea and Taiwan, the largest dealer partners command a 40% to 50% market share for their respective brands.
Landmark’s management notes that this global consolidation trend is now playing out in India. By acting as a well-capitalized corporate player (similar to companies like AutoNation in the US, which successfully houses multiple luxury brands), Landmark is positioned to absorb smaller competitors and consolidate market share as OEMs look to streamline their networks.
3. The Massive Gap in Pre-Owned Car Sales Globally, new car dealerships play a dominant role in the used car market. In the United States, approximately 30% of all pre-owned cars are sold by new car dealers. In India, however, this number is currently just under 4%. Landmark is leveraging this massive global disparity by utilizing its existing luxury showrooms and service centers to scale its pre-owned car business, aiming to capture a highly profitable segment that has historically been dominated by unorganized brokers and cash-burning startups in India.
4. Under-Penetration of Luxury Cars in India The baseline growth for this dealership model is heavily supported by the severe under-penetration of luxury vehicles in India compared to the rest of the world.
Globally, about 60% of dollar millionaires buy luxury cars; in India, that figure is only 4%.
Furthermore, luxury cars make up just 1% of the total passenger car market in India, compared to 7% in China and even higher percentages in countries like Korea and Taiwan.
By positioning itself as the largest partner for brands like Mercedes-Benz, Jeep, MG, M&M, and BYD, Landmark is structurally aligned to capture this pent-up demand as India’s affluent class expands and converges with global consumption averages.
They are in business since years before getting listed, i.e. they know the business and been through ups and down; thus slowdown in business should not affect business for long time rather do otherwise.
While the high-end PVs sales in India (luxury, premium) is said to increased, cos profits are not speaking it, OPM and NPM (screener charts) have gone down since Sep2023. Apparently down since 2-3 Qtr of listing. (listed Dec2022)
Yet the shareholders appreciation is almost nil. Share price was up when broader market was bullish.
Besides the promoter keep selling now and then.
The way it went from numbers (when we let number speak, the narratives) is: listed in bull market Dec 2022 , big investors took exit by 2023 to 2024, there since stock price and OPM and NPM are languishing. Remember someone saying- let numbers make narrative of business.
They need prove themselves to shareholders. Of course they gave reasons for decreased profit in concalls, there longterm experience of business should have brought back and rather increased the profitability.
Disc: Invested shortly after listing. Awaiting better profitability.
