Landmark Cars Limited IPO
i. Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault.
ii. Landmark Cars also have a commercial vehicle dealership with Ashok Leyland in India. They have a presence across the automotive retail value chain, including sales of new vehicles, after-sales service, and repairs (including sales of spare parts, lubricants, and accessories), sales of pre-owned passenger vehicles, and facilitation of the sales of third-party finance and insurance products. Landmark Cars started its operations and opened its first dealership for Honda in CY1998, and they have expanded its network to include 112 outlets in 8 Indian states and union territories, comprised of 59 sales showrooms and outlets and 53 after-sales service and spares outlets, as of June 30, 2022.
iii. In the three months ended June 30, 2022 and in Fiscal 2022, the company sold 5,398* and 19,264* new vehicles, respectively, including new passenger vehicles of Mercedes-Benz, Honda, Volkswagen, Jeep and Renault and new commercial vehicles of Ashok Leyland.
i. Leading automotive dealership for major OEMs with a strong focus on high growth segments
ii. Growing presence in after-sales segment leading predictable growth in revenues and superior margins
iii. Comprehensive business model capturing entire customer value-chain
Objects of the Landmark Cars Limited IPO:
Landmark Cars Limited IPO Details:
|Open Date:||Dec 13 2022|
|Close Date:||Dec 15 2022|
|Face Value:||₹ 5 Per Equity Share|
|Issue Type:||Book Built Issue|
|Issue Size:||552 Cr.|
|Lot Size:||29 Shares|
|Issue Price:||₹ 481-506 Per Equity Share|
|Listing Date:||Dec 23 2022|
Promoters And Management:
Financials of Landmark Cars Limited IPO:
|Particulars (In Crores)||2022||2021||2020|
|Revenue From Operations||2977||1956||2219|
|Purchase of stock in trade||2553||1710||1781|
|Change in inventories||-41||-63||114|
|Employee Benefits Expense||153||108||137|
|No. of Shares||3.95||3.95||3.95|
Comparison With Peers:
Recommendation on Landmark Cars Limited IPO:
Review and Recommendation of Landmark Car IPO by IZ Team is 4/101. They are a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault and also commercial vehicle retail business of Ashok Leyland. 2. They have a presence across the automotive retail value chain, including sales of new vehicles, after-sales service and repairs (including sales of spare parts, lubricants and accessories), sales of pre-owned passenger vehicles and facilitation of the sales of third-party financial and insurance products. The Car sales business is having low EBITDA of 2-3% while the after sales service business has higher EBITDA margins of 17-18%. 3. As on 30.09.2021, they have a network which include 112 outlets in 8 Indian states, comprised of 61 sales showrooms and outlets and 51 after-sales service and spares outlet. The vehicle dealership network is spread across 31 cities in eight states and union territories including Maharashtra, Uttar Pradesh, Gujarat, Haryana, Madhya Pradesh, Punjab, West Bengal and the National Capital Territory of Delhi. 4. As per CRISIL, the premium car market is expected to increase with CAGR of 10-12% in next 5 years and Luxury segment is expected to increase with CAGR of 20-22% in next 5 years. 5. The biggest risk in the business is the slowdown in the sales of premium and luxury cars and pricing set by OEMs for after sales and repair services. 6. Revenue is continuously decreasing from ~2800 Crores in FY19 to ~2000 Crores in Fy21. 7. Company was in losses in Fy19 and Fy20. And, made a Profit of 11 Crores in Fy21. 8. D/E is slightly more than 1. 9. P/E on the basis of 6MFy21 results is 36x which looks on higher side.