- 01 Mar 2024
- ICICI Securities
TO OPEN NEW DEALERSHIP & SERVICE CENTRE FOR MG MOTORS IN UJJAN (MP)
LANDMARK - 489 Change: -4.55 (-0.92 %)News: In the regulatory filing, Landmark Cars has informed the stock exchanges that it has received a letter of intent from MG Motor for opening a dealership in Ujjan, Madhya Pradesh, encompassing the sales and after sales business. This dealership will be established by M/s Aeromark Cars Private Limited, a wholly owned subsidiary company of Landmark Cars. After Indore and Bhopal, this is Landmark’s third MG dealership in the state of Madhya Pradesh.
Views: The company is undergoing diversification efforts amidst lower volumes at some of its traditional OEM partners. In the recent past it has partnered with MG Motors, M&M and BYD and is betting big on these new OEM nameplates to drive new vehicle sales. We like the company amidst premiumisation tailwind in the domestic PV space, long standing marquee OEM relationships at the company, its diversification efforts including pre-owned car business & healthy financial profile (ROCEs: ~20%+ & CFO yield: ~7% on forward basis).
Impact: Positive