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LANDMARK CARS LTD IPO

IPO Details

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29 shares
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₹ 481 – 506
₹ Up to 552 crores

Issue timeline

  • -
  • 20-Dec-2022
  • 21-Dec-2022
  • 22-Dec-2022
  • 23-Dec-2022

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- A leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault.(Source: CRISIL Report, December 2021)
- Number one dealer in India by sales volumes of new vehicles for Mercedes-Benz (in FY21), Honda (in FY21), Volkswagen (in CY20) and Stellantis (Jeep) (in FY21), and we were the third largest dealer by sales volume for Renault (in CY20).

Strengths & Risks

Strengths (3)

Leading automotive dealership for major OEMs with a strong focus on high growth segments
The company has started its operations and opened first dealership for Honda in 1998, and has expanded network to include 112* outlets in eight Indian states, comprising 61 sales outlets and 51* after-sales service and spares outlets, as of September 30, 2021.(*includes acquisition of 4 after sales service and spares outlets pursuant to acquisition of Shaman Wheels Private Limited w.e.f. october 1, 2021, Source: Company DRHP)

Risks (2)

The company may not be able to complete, or achieve the expected benefits from, current or future dealership acquisitions
which could materially adversely affect business, results of operations and financial condition.
The company has used acquisitions as a means of increasing the geographic reach of dealerships and may continue to make acquisitions to do so; and also may use acquisitions to acquire new OEM partners and expand the reach of service businesses in line with strategy.(Source: Company DRHP)

 

  • Leading automotive dealership for major OEMs with a strong focus on high growth segments
    The company has started its operations and opened first dealership for Honda in 1998, and has expanded network to include 112* outlets in eight Indian states, comprising 61 sales outlets and 51* after-sales service and spares outlets, as of September 30, 2021.(*includes acquisition of 4 after sales service and spares outlets pursuant to acquisition of Shaman Wheels Private Limited w.e.f. october 1, 2021, Source: Company DRHP)

  • Growing presence in after-sales segment leading predictable growth in revenues and superior margins
    The company's services and repair offerings at each of the dealerships comprise repair and collision repair services and include
    warranty work, insurance claim work and customer paid services. After-sales service and spares business provides a stable revenue stream and contributes to higher-margin revenues at each of the dealerships(Source: Company DRHP)

     

  • Comprehensive business model capturing entire customer value-chain.
    The business caters to the entire customer value-chain including retailing new vehicles, servicing and repairing vehicles, selling spare parts, lubricants and other products, selling pre-owned passenger vehicles and the distribution of third party financial and insurance products. (Source: Company DRHP)

     

  • The company may not be able to complete, or achieve the expected benefits from, current or future dealership acquisitions
    which could materially adversely affect business, results of operations and financial condition.
    The company has used acquisitions as a means of increasing the geographic reach of dealerships and may continue to make acquisitions to do so; and also may use acquisitions to acquire new OEM partners and expand the reach of service businesses in line with strategy.(Source: Company DRHP)

     

  • Investments in building pre-owned vehicle business and establishing a new electric passenger dealership with BYD may not be successful and may be loss-making.
    As part of strategy, the company is making investments to expand business of buying and selling pre-owned vehicles manufactured for the various OEMs. The pre-owned vehicle market in India is highly competitive, and face established competition from other OEM dealerships, standalone pre-owned vehicle dealerships and marketspace places.(Source: Company DRHP)

     

Financials

Net Worth
Total Income
Total Borrowings
Profit/Loss after tax
Basic Earning per Share (EPS)

Industry Overview

- Increasing demand for personal mobility : Increased need for social distancing as a result of the Covid pandemic accentuated the demand for personal mobility.According to the CRISIL Report, the increasing demand for personal mobility is expected to provide a significant push to the demand of PV industry in Fiscal 2021 and Fiscal 2022
- Increase in PV dealerships in India :  PV dealerships form approximately 15% of overall dealerships in India and contribute to approximately 20% of the overall touchpoints. Primary PV dealerships are typically based out of large cities with multiple outlets throughout the city and a sub-dealer network covering nearby semi-urban and rural areas (Source: Company DRHP)

vishal-mega-mart IPO

Landmark Cars Ltd IPO

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29 shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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