Shares of surged 17.5% in Tuesday’s trade (July 14) to hit a six-month high of ₹496.70, as investors cheered the company’s strong June-quarter business update.
The company reported its highest-ever first-quarter sales, supported by robust growth in both its vehicle sales and after-sales businesses.
Revenue from operations, including agency sales, rose 22.47% year-on-year to ₹1,733 crore. Vehicle sales (including agency sales and pre-owned vehicle sales) increased 24.15% YoY to ₹1,465 crore, while revenue from after-sales services, spare parts and other businesses grew 14.04% to ₹268 crore, as per the exchange filing.
The auto retailer said the reported revenue includes sales generated under Mercedes-Benz’s agency model, where customers place orders directly with Mercedes-Benz India Ltd. (MBIL). Under this arrangement, Landmark Cars earns a commission on each Mercedes-Benz vehicle sold through its dealerships.
Looking ahead, the company expects sales momentum to remain healthy, aided by the launch of several new models.
Deliveries of the Mercedes-Benz CLA, MG Majestor, and the new Renault Duster commenced during the June quarter. Additional launches from Mercedes-Benz, BYD, MG, Mahindra & Mahindra, Honda, and Kia are scheduled over the coming quarters, the company said.
It also said the supply of BYD vehicles improved during the June quarter and is expected to strengthen further in the current quarter.
Recovery gathers pace
Landmark Cars has been witnessing a steady recovery in recent months. The stock gained 15.4% in June, followed by another 10.2% so far in July, extending its rebound.
Despite the recent rally, the shares remain 27% below their recent peak of ₹662 and are still down 47.3% from their all-time high of ₹905.
The stock made its Dalal Street debut in December 2022 and enjoyed a strong rally through 2023 and much of 2024 before entering a prolonged correction that dragged it to an all-time low of ₹329.
On an annual basis, the stock delivered negative returns in each of the past three calendar years. However, the latest rally has helped it return to positive territory this year.
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