IndoStar Capital Finance Limited (INDOSTAR) AI Stock Analysis

• Market Cap: ₹36.13B
• Dividend Yield: N/A
• Average Volume (3M): 7.53K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 1.32
• Revenue Growth: -3.23%
• EPS Growth: 528.67%
• Country: IN
• Employees: 3,067
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 40.02
• Shares Outstanding: 136,703,500
• 10 Day Avg. Volume: 6,558
• 30 Day Avg. Volume: 7,532
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹268.00
• Price Target Upside: 1.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ₹268.00 ▲(1.40% Upside)

IndoStar Capital Finance Limited's stock score is primarily impacted by its financial performance challenges, including inconsistent revenue growth and high leverage. Technical indicators further suggest bearish momentum. While the valuation appears attractive with a low P/E ratio, the lack of a dividend yield and liquidity issues weigh on the overall score.

Positive Factors

Diversified Funding Base

A diversified funding base allows IndoStar to optimize its cost of funds, enhancing profitability and providing financial stability against market fluctuations.

Strategic Partnerships

These partnerships strengthen IndoStar's market position in vehicle financing, facilitating customer acquisition and supporting revenue growth.

Stable Gross Profit Margin

A stable gross profit margin indicates consistent cost management and pricing strategy, supporting long-term profitability despite revenue fluctuations.

Negative Factors

High Leverage

High leverage increases financial risk, potentially straining cash flows and limiting the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows suggest inefficiencies in cash generation, which can hinder the company's ability to sustain operations and invest in future growth.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects challenges in market demand or competitive positioning, potentially impacting long-term financial performance.

IndoStar Capital Finance Limited Business Overview & Revenue Model

Company Description

IndoStar Capital Finance Limited (INDOSTAR) is a prominent non-banking financial company (NBFC) based in India, specializing in providing a wide range of financial services. The company primarily focuses on lending solutions, including wholesale and retail financing, with a significant emphasis on commercial vehicle financing, SME financing, and personal loans. Additionally, INDOSTAR offers various asset-backed financing options, catering to both individual and institutional clients across diverse sectors.

How the Company Makes Money

IndoStar Capital Finance Limited generates revenue primarily through interest income from its loan portfolio. The company provides loans to various segments, including small and medium enterprises (SMEs), commercial vehicles, and personal lending, which contributes to its interest earnings. Furthermore, INDOSTAR also earns fees from processing loan applications, and from ancillary services related to its financing products. The company's revenue model is bolstered by its strategic partnerships with vehicle manufacturers and dealers, which helps in acquiring customers. Additionally, the company benefits from a diversified funding base, including bank borrowings, public deposits, and capital market instruments, allowing it to optimize its cost of funds and enhance profitability.

IndoStar Capital Finance Limited Financial Statement Overview

Summary

IndoStar Capital Finance Limited faces financial challenges with inconsistent revenue growth, high leverage, and negative cash flows. While there are some strengths in asset structure, the company needs to address profitability and liquidity issues to improve its financial health.

Income Statement

IndoStar Capital Finance Limited has shown inconsistent revenue growth with a negative trend in recent years. The gross profit margin has been relatively stable, but the net profit margin has fluctuated significantly, indicating volatility in profitability. The EBIT and EBITDA margins have also shown variability, reflecting operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. However, the equity ratio is moderate, suggesting a balanced asset structure. Return on equity has been low, reflecting challenges in generating returns for shareholders.

Cash Flow

Cash flow metrics reveal negative operating and free cash flows, indicating liquidity challenges. The free cash flow to net income ratio is positive, but the operating cash flow to net income ratio is negative, highlighting inefficiencies in cash generation from operations.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.37B	14.10B	6.26B	11.13B	10.94B	11.83B
Gross Profit	4.84B	6.38B	5.04B	3.55B	3.88B	5.62B
EBITDA	1.61B	2.21B	4.25B	13.33B	1.68B	5.27B
Net Income	1.21B	1.21B	1.16B	2.25B	-7.37B	-2.14B
Balance Sheet
Total Assets	132.56B	132.56B	111.21B	91.22B	96.61B	100.82B
Cash, Cash Equivalents and Short-Term Investments	4.22B	4.22B	11.62B	4.16B	4.36B	17.23B
Total Debt	69.16B	69.16B	75.72B	56.48B	62.23B	60.08B
Total Liabilities	96.20B	96.20B	78.85B	60.11B	67.32B	63.83B
Stockholders Equity	36.35B	36.35B	32.35B	31.12B	29.29B	36.98B
Cash Flow
Free Cash Flow	0.00	-10.83B	-22.22B	8.80B	-16.00B	10.58B
Operating Cash Flow	0.00	-10.61B	-22.08B	8.99B	-15.64B	10.68B
Investing Cash Flow	0.00	-3.05B	6.83B	-2.59B	11.65B	-9.92B
Financing Cash Flow	0.00	10.70B	19.59B	-5.40B	2.00B	352.88M

IndoStar Capital Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 264.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOSTAR, the sentiment is Negative. The current price of 264.3 is below the 20-day moving average (MA) of 266.30, below the 50-day MA of 289.67, and below the 200-day MA of 289.45, indicating a bearish trend. The MACD of -6.46 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 45.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDOSTAR.

IndoStar Capital Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEDFINA	72 Outperform	₹56.00B	24.29		―	21.41%	-16.92%
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.75%	9.73%	1.23%
SHAREINDIA	67 Neutral	₹31.94B	10.07		0.86%	-14.58%	-43.34%
MASFIN	66 Neutral	₹58.36B	18.00		0.43%	24.45%	10.58%
INDOSTAR	48 Neutral	₹36.13B	5.62		―	-3.23%	528.67%
NORTHARC	―	₹39.78B	12.55		―	―	―
PAISALO	60 Neutral	₹34.27B	16.61		0.26%	13.28%	-6.07%