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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 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
₹275.00
▲(18.23% Upside)
Action:Reiterated
Date:05/28/26
The score is held back mainly by weak and inconsistent cash generation and a mixed leverage picture, despite improved profitability. Technicals are moderately supportive with positive momentum and price above key short-to-mid-term averages, but valuation is a clear risk given the very high P/E.
Positive Factors
Profitability Recovery
Sustained net profitability since FY2023 shows the company has returned to positive earnings after prior losses. Durable profits support retained capital accumulation, improve ability to absorb credit shocks, and create optionality for reinvestment or liability management over the next 2–6 months.
Negative Factors
Weak Cash Generation
Repeated negative operating and free cash flows increase reliance on external funding and raise refinancing and liquidity risk. Poor cash conversion constrains internal reinvestment and elevates vulnerability to funding stress or tightening credit markets over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
Sustained net profitability since FY2023 shows the company has returned to positive earnings after prior losses. Durable profits support retained capital accumulation, improve ability to absorb credit shocks, and create optionality for reinvestment or liability management over the next 2–6 months.
Read all positive factors

IndoStar Capital Finance Limited (INDOSTAR) vs. iShares MSCI India ETF (INDA)

IndoStar Capital Finance Limited Business Overview & Revenue Model

Company Description
IndoStar Capital Finance Limited, a non-banking financial company, provides various financing services to corporates, small and medium enterprises (SMEs), and individual customers in India. The company offers vehicle finance services, including lo...
How the Company Makes Money
IndoStar makes money primarily by lending: it raises funds (e.g., from banks/financial institutions and capital markets) and deploys those funds as loans to customers, earning interest income on its loan portfolio. Its core revenue stream is net i...

IndoStar Capital Finance Limited Financial Statement Overview

Summary
Profitability has recovered versus FY2021–FY2022 with net income positive from FY2023–FY2026, but operating performance is volatile (EBIT dropped sharply in FY2026 vs FY2025 despite higher revenue). Balance-sheet leverage was elevated in FY2021–FY2025 and FY2026 shows a major debt discontinuity that reduces comparability. Cash generation is the biggest drag, with operating cash flow and free cash flow negative in most recent years (FY2024–FY2026) and a sharp FCF deterioration in FY2026.
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue13.94B12.72B9.26B10.86B10.94B
Gross Profit7.44B6.67B4.23B3.83B5.50B
EBITDA3.28B4.63B3.57B3.49B-6.99B
Net Income1.40B1.21B1.16B2.25B-7.37B
Balance Sheet
Total Assets95.17B132.56B111.21B91.22B96.61B
Cash, Cash Equivalents and Short-Term Investments3.10B9.02B14.44B10.75B4.36B
Total Debt54.77B69.16B75.72B56.48B62.23B
Total Liabilities57.34B96.20B78.85B60.11B67.32B
Stockholders Equity37.83B36.35B32.35B31.12B29.29B
Cash Flow
Free Cash Flow-148.70M-10.83B-22.22B8.80B-16.00B
Operating Cash Flow-61.80M-10.61B-22.08B8.99B-15.64B
Investing Cash Flow12.76B-3.05B6.83B-2.59B11.65B
Financing Cash Flow-13.30B10.70B19.59B-5.40B2.00B

IndoStar Capital Finance Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price232.60
Price Trends
50DMA
233.39
Positive
100DMA
222.16
Positive
200DMA
230.65
Positive
Market Momentum
MACD
8.73
Negative
RSI
66.78
Neutral
STOCH
73.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOSTAR, the sentiment is Positive. The current price of 232.6 is below the 20-day moving average (MA) of 254.33, below the 50-day MA of 233.39, and above the 200-day MA of 230.65, indicating a bullish trend. The MACD of 8.73 indicates Negative momentum. The RSI at 66.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INDOSTAR.

IndoStar Capital Finance Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
₹58.51B16.070.43%25.13%17.12%
66
Neutral
₹52.83B12.9214.63%0.16%
65
Neutral
₹66.35B27.600.29%22.32%17.78%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹40.12B41.61-3.48%
54
Neutral
₹43.62B17.80-6.77%70.81%
49
Neutral
₹15.07B6.9939.48%-8.51%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:INDOSTAR
IndoStar Capital Finance Limited
269.30
-46.15
-14.63%
IN:MASFIN
MAS Financial Services Ltd.
329.65
16.19
5.17%
IN:MUTHOOTMF
Muthoot Microfin Ltd
246.50
80.15
48.18%
IN:NORTHARC
Northern Arc Capital Ltd.
325.45
66.55
25.70%
IN:PAISALO
Paisalo Digital Ltd.
72.36
41.69
135.93%
IN:UGROCAP
Ugro Capital Limited
97.77
-82.83
-45.86%

IndoStar Capital Finance Limited Corporate Events

IndoStar Boosts Q4FY26 Profitability, Steps Up Provisioning to De-risk Legacy Book
May 28, 2026
IndoStar Capital Finance reported robust growth in the March 2026 quarter, with disbursements rising 17% sequentially and 21% year-on-year to ₹1,306 crore, and assets under management reaching ₹8,056 crore on broad-based momentum in ve...
IndoStar Capital Finance Releases FY 2026 Investor Presentation
May 28, 2026
IndoStar Capital Finance Limited has released an investor presentation detailing its audited standalone and consolidated financial results for the quarter and full financial year ended March 31, 2026. The disclosure, made under Regulation 30 of SE...
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: May 28, 2026