Landmark Cars Limited IPO Details

Landmark Cars Limited IPO Details

Description

Landmark Cars Limited is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. The company also caters to the commercial vehicle retail business of Ashok Leyland in India and has a presence across the automotive retail value chain, including sales of new vehicles, after-sales service and repairs, sales of pre-owned passenger vehicles, and facilitation of the sales of third-party finance and insurance products. The company currently has around 112 outlets in 8 states including 61 sales showrooms and outlets and 51 after-sales services and spares outlets.

Qualities

• Here are some strengths of Landmark Cars Limited:
• Leading automotive dealership for major OEMs with a strong focus on high-growth segments;
• Growing presence in the after-sales segment leading to predictable growth in revenues and superior margins;
• Comprehensive business model capturing entire customer value-chain;
• Robust business processes leveraging technological innovation and digitalization;
• Profitable and improving balance sheet; and
• Experienced Promoter and professional management team with technical expertise

Risks

• Here are some risk factors associated with Landmark Cars Limited:
• Subject to the significant influence of, and restrictions imposed by OEMs pursuant to the terms of its dealership or agency agreements
• Any damage to the OEMs’ vehicle brands or their failure to compete effectively in India
• Inability to complete or achieve the expected benefits from, current or future dealership acquisitions
• The impact of changing economic conditions and a range of other factors
• The continuing impact of the ongoing COVID-19 pandemic
• Inability to successfully implement some or all of its business strategies in a timely manner
• Increasing competition among automotive dealerships through online and offline marketing and competition from the unauthorized service centers
• Changes to the automotive industry and consumer views on car ownership
• A large portion of its business operations are concentrated in the states of Gujarat and Maharashtra
• Continued dependence on the success and continued financial stability of the OEMs with which it has dealership agreements