Landmark Cars Share Price Jumps 7% on Deal with JSW MG Motor
Introduction:
Shares of Landmark Cars surged with the aid of 6.62% to Rs 649.90 during intraday change at the Bombay Stock Exchange (BSE) on Tuesday. This super leap observed the declaration that the organization had secured a letter of reason from JSW MG Motor India to set up new MG Select dealerships in Ahmedabad and Kolkata.
Strategic Move into ‘Accessible Luxury’
The MG Select brand, aimed at the burgeoning “accessible luxury” segment in India, will launch with two key models: the MG Cyberster and MG M9 EV, with further models expected to be introduced. Landmark Cars, through its wholly owned subsidiary Aeromark Cars Private Limited, will establish and operate these new dealerships.
Sales of MG Select vehicles are expected to begin by May 2025, positioning Landmark Cars to capture a slice of the rapidly growing luxury EV market in India.
Positive Outlook Amidst Market Volatility
The announcement has sparked optimism among investors, with the stock initially soaring by more than 6%, but later retracting slightly to trade at Rs 609.40, just 0.02% lower than its previous close. Despite the pullback, the overall momentum from the MG Select partnership is expected to enhance Landmark’s position in India’s competitive automotive retail market.
Landmark Cars’ Stock Soars 7% Following Strategic MG Select Deal with JSW MG Motor:
Sanjay Thakker, Promoter and Chairman of Landmark Cars, expressed excitement about the upcoming MG Select products, emphasizing the potential of these vehicles to expand the “accessible luxury” segment in India. He also noted that this move aligns with the company’s broader strategy to grow with profitable brands and solidify its presence in key geographies.
Stock Performance and Market Sentiment
Over the past six months, Landmark Cars’ stock has underperformed the broader market, down by 3.7%, and has slipped 26% over the past year. In comparison, the BSE Sensex has declined by just 5.2% in the last six months but rose by 6.8% over the same period. Despite this, Landmark Cars’ market capitalization currently stands at Rs 2,521.14 crore,
with a price-to-earnings (P/E) ratio of 48.64 and an earnings per share (EPS) of Rs 12.53.
Expanding Portfolio and Market Presence
Landmark Cars, a leading player in the premium automotive retail sector in India, operates dealerships for a variety of brands, including Mercedes-Benz, Honda, Jeep, Volkswagen, BYD, Renault, Mahindra & Mahindra, Kia, and MG Motors. Additionally, the company has a significant presence in the commercial vehicle sector with Ashok Leyland. The company offers a comprehensive suite of services,
from sales of new vehicles to after-sales support, and has made a mark in the pre-owned vehicle market as well.
Conclusion:
As the company continues to expand its brand offerings and geographic reach, it is positioning itself as a key player in India’s evolving automotive landscape, particularly as consumer interest in luxury electric vehicles continues to rise.
FAQ:
1. Why did Landmark Cars’ share price surge?
Landmark Cars’ share price jumped by 6.62% after the company announced a deal with JSW MG Motor India to open new MG Select dealerships in Ahmedabad and Kolkata. This move is seen as a strategic expansion into the “accessible luxury” market with the upcoming launch of MG Cyberster and MG M9 EV models.
2. What is MG Select?
MG Select is a new brand channel from MG Motors India focused on the “accessible luxury” segment in the Indian automotive market. The brand will initially offer two models – the MG Cyberster and MG M9 EV – with more models expected to follow. The dealerships for these products will be operated by Aeromark Cars, a subsidiary of Landmark Cars.
3. How will Landmark Cars benefit from this partnership?
The partnership with MG Motor India allows Landmark Cars to expand its presence in two key markets: Ahmedabad and Kolkata. Landmark will be able to sell MG Select products alongside its existing portfolio of premium brands such as Mercedes-Benz, Mahindra & Mahindra, and Kia. This diversification is expected to increase Landmark’s market share and strengthen its position in the rapidly growing luxury EV market.
4. When will sales of MG Select vehicles begin?
Sales of MG Select vehicles, including the MG Cyberster and MG M9 EV, are expected to begin by May 2025.
5. What are the key brands Landmark Cars currently deals with?
Landmark Cars operates dealerships for several high-profile brands, including Mercedes-Benz, Honda, Jeep, Volkswagen, BYD, Renault, Mahindra & Mahindra, Kia, and MG Motors. The company also has a significant presence in the commercial vehicle segment with Ashok Leyland.
6. How has Landmark Cars’ stock performed recently?
Landmark Cars’ stock has had a mixed performance. Over the past six months, the stock has underperformed the market, falling by 3.7%. It has seen a steeper decline of 26% over the past year. However, the recent announcement of the MG Select partnership led to a sharp spike in its share price, highlighting investor optimism around its new venture.
7. What is Landmark Cars’ market capitalization and valuation?
As of the latest data, Landmark Cars has a market capitalization of Rs 2,521.14 crore. The company’s stock is priced at a price-to-earnings (P/E) ratio of 48.64, with an earnings per share (EPS) of Rs 12.53.
8. What is the significance of this new MG Select venture for Landmark Cars?
The new MG Select venture provides Landmark Cars with a unique opportunity to tap into the growing demand for electric and luxury vehicles in India. By diversifying its product offerings and entering the emerging EV market, Landmark is positioning itself for long-term growth in an evolving automotive sector.
9. What is the broader market outlook for Landmark Cars?
Despite the recent gains, Landmark Cars’ stock has faced volatility. However, the company’s diversified brand portfolio, its expansion into the electric vehicle space with MG Select, and its established presence in key markets provide a positive outlook for its future growth. Investors are closely watching the company’s ability to capitalize on the growth of the luxury automotive and EV segments in India.
10. What services does Landmark Cars offer apart from vehicle sales?
Landmark Cars offers a wide range of services beyond the sale of new vehicles. These include after-sales service and repairs, sales of pre-owned passenger vehicles, and facilitation of third-party financial and insurance products. The company’s extensive service offerings cater to both individual consumers and businesses.
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