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Landmark Cars shares can surge over 60% on margin recovery, according to this analystLandmark Cars is the first multi-brand, multi-location auto dealer operating in the premium and luxury car segment in India, with 70 showrooms and 61 workshops as of FY25.By Meghna Sen   July 14, 2025, 11:22:12 AM IST (Published)2 Min ReadShares of Landmark Cars Ltd. gained as much as 5% on Monday, July 14, after domestic brokerage firm B&K Securities initiated coverage on the stock.

B&K Securities initiated coverage on Landmark Cars with a 'Buy' rating and a price target of ₹820 per share. This target implies a potential upside of over 60% from Friday's closing levels.

The brokerage wrote in its note that over the last two years (FY23-25), while Landmark Cars' proforma and reported revenues have grown at a CAGR of 11% and 9%, respectively, EBITDA, PBT, and PAT have declined by 3%, 20%, and 55%.

Landmark Cars' proforma sales growth of 11% was nearly 2x the Indian passenger vehicle sales CAGR of 5% over FY23-25.

During FY25, while the older outlets and workshops contributed ₹70 crore to PBT, the newly opened ones (17 in total) incurred PBT-level losses of ₹40 crore.

As these facilities ramp up, they are expected to break even starting Q1FY26, with most turning profitable by the end of FY26.

The company has also tied up with three new brands — Mahindra & Mahindra (M&M), Kia, and MG Motors — over the past two years.

While the after-sales mix for older brands stands at 17%, it is currently 9% for the new brands. As the after-sales mix improves for these new brands and the new outlets scale up, the brokerage expects the company's margins to improve from 5.5% to 7.5% over FY25-27E.

Landmark Cars is the first multi-brand, multi-location auto dealer operating in the premium and luxury car segment in India, with 70 showrooms and 61 workshops as of FY25.

B&K Securities believes Landmark Cars remains a highly moated business with pan-India reach, high switching costs for OEMs, and market leadership with several major OEMs, including Mercedes-Benz, BYD, Jeep, Volkswagen, Honda, and MG Motors.

The high capital requirements deter smaller players from entering the segment, while the complex nature of the business is driving industry consolidation.

Landmark Cars remains one of the few professionally managed auto dealerships in India, backed by Sanjay Thakker, the brokerage added.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsshare market today