ICICI Securities Sets Target Price of Rs 570 for Landmark Cars
Landmark Cars' Earnings Outlook Improves, According to ICICI Securities
Landmark Cars (LMC) has seen its earnings before interest, taxes, depreciation, amortization, and maintenance (EBITDAM) come in at 5.9%, a 30 basis point (bps) improvement over ICICI Securities' estimate. This upward revision is expected to be supported by product interventions across partner brands, which should drive growth in the near-to-medium term. Additionally, the rising penetration of electric vehicles (EVs) is expected to have a positive impact on the company's growth prospects.
The contribution of high-growth brands such as M&M, Kia, MG, and BYD to LMC's overall performance stood at around 28% in the fiscal year 2026. As the costs associated with recent expansions were largely front-loaded, ICICI Securities expects LMC's capital expenditure intensity to moderate. However, the revenue scale-up at new outlets is expected to support growth and drive margin expansion ahead.
| Brand | Contribution to LMC's Performance (FY26) |
|---|---|
| M&M | ~11% |
| Kia | ~6% |
| MG | ~5% |
| BYD | ~6% |
| Total | ~28% |
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ICICI Securities maintains a BUY recommendation for LMC with a revised target price of INR 570, based on a price-to-earnings ratio (P/E) of 16x for fiscal year 2028 estimates. This revised target price reflects a slight downward revision from the previous target price of INR 575. The impact of fuel price hikes on demand remains a key monitorable for the company.
Investor Takeaway
Maintain BUY with a revised TP of INR 570 for Landmark Cars.
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