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IndoStar Capital Finance Limited (IN:INDOSTAR)
:INDOSTAR
India Market
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IndoStar Capital Finance Limited (INDOSTAR) AI Stock Analysis

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IN:INDOSTAR

IndoStar Capital Finance Limited

(INDOSTAR)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
₹269.00
▲(11.90% 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 (INDOSTAR) vs. iShares MSCI India ETF (INDA)

IndoStar Capital Finance Limited Business Overview & Revenue Model

Company DescriptionIndoStar Capital Finance Limited, a non-banking financial company, provides various financing services to corporates, small and medium enterprises, and individual customers in India. The company operates through four segments: Large Corporate, SME, Commercial Vehicle, and Housing Finance. It offers corporate lending products, including secured corporate lending, real estate financing, capital market financing, special situation and acquisition financing, and debt capital market solutions. The company also provides SME lending products for working capital, and business expansion or other financial requirements; vehicle finance; and housing finance. The company was incorporated in 2009 and is based in Mumbai, India. IndoStar Capital Finance Limited operates as a subsidiary of BCP V Multiple Holdings Pte. Ltd.
How the Company Makes MoneyIndoStar 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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.50B14.10B11.04B11.74B11.64B12.65B
Gross Profit5.19B6.38B10.68B3.55B3.88B5.62B
EBITDA1.41B2.21B4.25B13.33B-3.30B5.27B
Net Income6.41B1.21B1.16B2.25B-7.37B-2.14B
Balance Sheet
Total Assets0.00132.56B111.21B91.22B96.61B100.82B
Cash, Cash Equivalents and Short-Term Investments0.009.02B11.62B4.16B4.36B17.23B
Total Debt0.0069.16B75.72B56.48B62.23B60.08B
Total Liabilities-36.35B96.20B78.85B60.11B67.32B63.83B
Stockholders Equity36.35B36.35B32.35B31.12B29.29B36.98B
Cash Flow
Free Cash Flow0.00-10.83B-22.22B8.80B-16.00B10.58B
Operating Cash Flow0.00-10.61B-22.08B8.99B-15.64B10.68B
Investing Cash Flow0.00-3.05B6.83B-2.59B11.65B-9.92B
Financing Cash Flow0.0010.70B19.59B-5.40B2.00B352.88M

IndoStar Capital Finance Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price240.40
Price Trends
50DMA
266.61
Negative
100DMA
298.40
Negative
200DMA
286.20
Negative
Market Momentum
MACD
-7.12
Positive
RSI
32.70
Neutral
STOCH
12.17
Positive
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 240.4 is below the 20-day moving average (MA) of 256.36, below the 50-day MA of 266.61, and below the 200-day MA of 286.20, indicating a bearish trend. The MACD of -7.12 indicates Positive momentum. The RSI at 32.70 is Neutral, neither overbought nor oversold. The STOCH value of 12.17 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
₹60.38B25.9121.41%-16.92%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
₹30.70B9.680.87%-14.58%-43.34%
64
Neutral
₹55.05B16.980.46%24.45%10.58%
60
Neutral
₹34.15B16.550.27%13.28%-6.07%
51
Neutral
₹33.19B5.11-3.23%528.67%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:INDOSTAR
IndoStar Capital Finance Limited
240.40
-37.35
-13.45%
IN:FEDFINA
Fedbank Financial Services Ltd.
158.50
44.80
39.40%
IN:MASFIN
MAS Financial Services Ltd.
301.20
9.12
3.12%
IN:NORTHARC
Northern Arc Capital Ltd.
270.35
-13.55
-4.77%
IN:PAISALO
Paisalo Digital Ltd.
38.76
-13.42
-25.72%
IN:SHAREINDIA
Share India Securities Ltd
143.20
-168.80
-54.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025