IndoStar Capital Finance Limited (INDOSTAR) AI Stock Analysis

• Market Cap: ₹32.65B
• Dividend Yield: N/A
• Average Volume (3M): 7.94K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 1.30
• Revenue Growth: -3.23%
• EPS Growth: 528.67%
• Country: IN
• Employees: 3,067
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 136,708,250
• 10 Day Avg. Volume: 6,211
• 30 Day Avg. Volume: 7,943
• PEG Ratio: 19.89
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 6.99
• P/FCF Ratio: -9.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ₹269.00 ▲(10.13% Upside)

IndoStar Capital Finance Limited's overall stock score is primarily influenced by its financial performance challenges, including inconsistent revenue growth and high leverage. The technical analysis indicates a bearish trend, further impacting the score. However, the stock's low P/E ratio suggests potential undervaluation, providing some support to the overall score.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.50B	14.10B	11.04B	11.74B	11.64B	12.65B
Gross Profit	5.19B	6.38B	10.68B	3.55B	3.88B	5.62B
EBITDA	1.41B	2.21B	4.25B	13.33B	-3.30B	5.27B
Net Income	6.41B	1.21B	1.16B	2.25B	-7.37B	-2.14B
Balance Sheet
Total Assets	0.00	132.56B	111.21B	91.22B	96.61B	100.82B
Cash, Cash Equivalents and Short-Term Investments	0.00	9.02B	11.62B	4.16B	4.36B	17.23B
Total Debt	0.00	69.16B	75.72B	56.48B	62.23B	60.08B
Total Liabilities	-36.35B	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: Neutral
• Last Price: 244.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOSTAR, the sentiment is Neutral. The current price of 244.25 is above the 20-day moving average (MA) of 241.88, below the 50-day MA of 255.29, and below the 200-day MA of 283.42, indicating a neutral trend. The MACD of -4.90 indicates Negative momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 80.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	₹55.98B	22.76	―	―	14.44%	-10.84%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHAREINDIA	―	₹44.02B	13.88	―	0.63%	-14.58%	-43.34%
MASFIN	―	₹54.20B	16.72	―	0.46%	24.45%	10.58%
PAISALO	―	₹34.92B	16.93	―	0.26%	13.28%	-6.07%
INDOSTAR	―	₹32.65B	5.08	―	―	-3.23%	528.67%

IndoStar Capital Finance Limited Corporate Events

IndoStar Sells Commercial Vehicle Loan Portfolio to Phoenix ARC

IndoStar Capital Finance Limited announced the sale of a portion of its Commercial Vehicle Loan portfolio to Phoenix ARC Private Limited, aiming to reduce its stressed assets. The transaction involves dues outstanding of Rs. 309.6 crores, with a purchase consideration of up to Rs. 220.3 crores, marking a strategic move to streamline its operations and improve financial health.

IndoStar Capital Finance to Issue INR 6,000 Crores in Debentures

IndoStar Capital Finance Limited announced that its shareholders approved a special resolution to issue non-convertible debentures up to INR 6,000 crores on a private placement basis at their Annual General Meeting. This move is expected to enhance the company’s capital structure and potentially improve its market positioning by providing additional financial resources to support its operations and growth strategies.

IndoStar Capital Finance Appoints New Director and Holds Successful AGM

IndoStar Capital Finance Limited announced the appointment of Mr. Vishal Goenka as a Non-Executive Director, effective from September 25, 2025, subject to retirement by rotation. The company held its 16th Annual General Meeting (AGM) on the same day, where all resolutions were approved by the members with the requisite majority. The AGM was conducted through video conferencing, allowing members to vote remotely, reflecting the company’s adherence to regulatory compliance and its commitment to facilitating shareholder participation.

IndoStar Capital Finance Limited Approves Resolutions at 16th AGM

IndoStar Capital Finance Limited held its 16th Annual General Meeting on September 25, 2025, through video conferencing, where all resolutions were approved by the requisite majority. The meeting facilitated remote e-voting, and the results, along with the Scrutinizer’s Report, are available on the company’s website, marking a successful compliance with regulatory requirements.

IndoStar Capital Finance Appoints New COO to Drive Strategic Growth

IndoStar Capital Finance Limited has appointed Mr. Amit Kumar Khan as the Chief Operating Officer, effective August 14, 2025. Mr. Khan brings over 25 years of experience in the banking and financial services sector, with expertise in retail assets lending, risk management, and technology-led transformation. His appointment is expected to drive operational excellence and support the company’s strategic growth vision, enhancing its customer-centric retail lending solutions.