Landmark Cars shares surge 6% after Rs 330 crore worth block deal; TGP Capital likely seller

Shares of Landmark Cars climbed over 6 per cent in Friday's trade after Rs 330.07 crore worth shares changed hands on the counter on NSE in block deals. Data showed 50,16,364 shares changed hands on the counter on NSE at a price of Rs 658, a 0.66 per cent discount to Thursday's price. Earlier a media report suggested that TPG Capital was looking to sell 11 per cent stake in the recent market debutant via block deals.

The discount at which stocks were actually sold today via bulk deals is against an up to 5 per cent discount suggested by the CNBC TV-18 report.

Following the development, the stock rose 6.43 per cent to hit a high of Rs 705.05. The scrip, which got listed on December 23 last year, has jumped 39.33 per cent over its issue price of Rs 506. TPG Growth II SF Pte was among selling shareholder (Rs 325 crore) in the Rs 402 crore offer for sale during the IPO process. The weighted cost of average acquisition for TPG Growth II SF Pte was Rs 137.42 apiece.

With the fresh selling, TPG Capital may have completely exit as a stakeholder in Landmark Cars. The US-based private equity firm, via its affiliate TPG Growth II SF Pte Ltd, held 44,56,270 shares or an 11.25 per cent stake in the Indian automotive retailer as of March 31, shareholding data available with BSE suggested.

The 11.25 per cent stake at Thursday's market capitalisation of Rs 2,685.51 crore amounted to Rs 302 crore.

Landmark Cars also recently saw insider sells of late.

Monarch Networth Capital in May initiated coverage on Landmark Cars with a target price of Rs 830, saying the company is a standout entity for its uniqueness – the only listed auto dealer in India and that too focused on luxury vehicles. Landmark offers not just a diversified revenue stream across retailing, servicing, pre-owned vehicles and insurance but also a play  on India’s incipient but aggressive luxury products growth, it said.

"We expect the company to post revenue growth of 19 per cent CAGR over FY22-25E, while Ebitda will likely grow at 28 epr cent during the same period. We expect margins to increase by 130 bps over the same period to 7.2 per cent. At the same time, PAT is likely to grow at a CAGR of 40 per cent over the same period. We value the

Company at 18 times FY25E earnings estimate of Rs 46," it said. 

Also read: Hindustan Aeronautics shares top Rs 3,800 mark post GE deal; stock up 50% in 2023 so far 

 

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