Landmark cars
Prominent dealer of Mercedes Benz
Luxury car market proxy play and also much more than that
Many more oems apart from Mercedes
9 OEM
Car dealer has 4k+ employees
Luxury car – From 4 million cars in India we sell 40k luxury cars (in most countries it’s 10% and in India it’s 1%)
Wealth effect is strong in India so luxury car market will grow exponentially
Within luxury cars Mercedes doing very well and 15% of Mercedes is sold by landmark
Mercedes has reduced dealer’s working capital cycle
Strong growth with a player landmark is comfortable with which is Mercedes
After sales business is non cyclical the car sold come for repairs and maintenance. Landmark serviced 3lakh cars last year. Largely linear growth here.
OEM sales can be cyclical but after sale is stable
It also has share of accidental damage
After sale service ebitda margin 18% and Roce is 25% (60% of ebitda)
Asset light model.
Landmark has tie ups with 9 oems
Non mercedes volumes are also growing at 6-7%
Premiumization in cars is increasing
Optionality – 100cr pre owned car biz which is refurbishment of old car. This is 1.5x of PV market (23b dollar market) so very miniscule
Capital allocation is disciplined
Highly roce focus
High skin in the game
Seperate ceos for each OEM and for Mercedes seperate ceos in seperate geography
EBITDA CAGR 19% (FY26E) – Driven by volumes and realisation
Within PV you have a diversified opportunity
Apart from Tesla all need dealers and service centres
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