Landmark Cars - Beneficiary Of Domestic Car Premiumisation: ICICI Securities Initiates Coverage

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.We initiate coverage on Landmark Cars Ltd. with an 'Add rating and 'discounted cash flow-based target price of Rs 766, implying multiple of 18 times FY25E earnings. We believe, Landmark Cars is a direct beneficiary of the ongoing car premiumisation in India, which has resulted in a rising proportion of utility vehicles and 10% plus compound annual growth rate in car average sellince price during FY21-FY23. Nevertheless, mean ASP in the India passenger vehicle industry is only ~$13,000 versus ~$35,000 plus in the developed markets and ~$20,000 plus in the developing markets. Thus, we believe, premiumisation of PVs in India has a long way to go and Landmark Cars is ready to benefit by adding new original equipment manufacturers to its client-list in addition to the ones with whom it is already doing business (e.g. Mercedes Benz, Jeep, VolksWagen, etc). Landmark Cars is focused on maximising higher-margin service/spares revenue from its target catchment areas and existing stores for car sales instead of adding new sales outlets in new areas. By principle, it would avoid being a third or fourth player entering a market and having a lower share in it. Thus, in FY19-FY24E, without changing the net number of outlets, Landmark Cars is set to more than double its revenue. With stable profitability and asset-light business model, we expect the company to deliver ~20% return on equity in FY24EFY25E..Click on the attachment to read the full report:.Gujarat Fluorochemicals - Riding On Fluorochemicals Expertise With Value Addition Focus: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Landmark Cars - Beneficiary Of Domestic Car Premiumisation: ICICI Securities Initiates Coverage

Initiate coverage on Landmark Cars with 'Add rating, 'DCF-based target price of Rs 766, implying multiple of 18x FY25E earnings.

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