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IndoStar Capital Finance Limited
(INDOSTAR)
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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)
Market Cap
₹43.62B
Dividend YieldN/A
Average Volume (3M)7.94K
Price to Earnings (P/E)17.8
Beta (1Y)1.63
Revenue Growth-6.77%
EPS Growth70.81%
CountryIN
Employees4,371
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)15.13
Shares Outstanding161,585,000
10 Day Avg. Volume6,211
30 Day Avg. Volume7,943
Financial Highlights & Ratios
PEG Ratio1.99
Price to Book (P/B)0.72
Price to Sales (P/S)1.97
P/FCF Ratio-184.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.7
Revenue Forecast (FY)₹8.89B
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
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.94B | 12.72B | 9.26B | 10.86B | 10.94B |
| Gross Profit | 7.44B | 6.67B | 4.23B | 3.83B | 5.50B |
| EBITDA | 3.28B | 4.63B | 3.57B | 3.49B | -6.99B |
| Net Income | 1.40B | 1.21B | 1.16B | 2.25B | -7.37B |
Balance Sheet | |||||
| Total Assets | 95.17B | 132.56B | 111.21B | 91.22B | 96.61B |
| Cash, Cash Equivalents and Short-Term Investments | 3.10B | 9.02B | 14.44B | 10.75B | 4.36B |
| Total Debt | 54.77B | 69.16B | 75.72B | 56.48B | 62.23B |
| Total Liabilities | 57.34B | 96.20B | 78.85B | 60.11B | 67.32B |
| Stockholders Equity | 37.83B | 36.35B | 32.35B | 31.12B | 29.29B |
Cash Flow | |||||
| Free Cash Flow | -148.70M | -10.83B | -22.22B | 8.80B | -16.00B |
| Operating Cash Flow | -61.80M | -10.61B | -22.08B | 8.99B | -15.64B |
| Investing Cash Flow | 12.76B | -3.05B | 6.83B | -2.59B | 11.65B |
| Financing Cash Flow | -13.30B | 10.70B | 19.59B | -5.40B | 2.00B |
IndoStar Capital Finance Limited Technical Analysis
Positive
232.60
Price Trends
233.39
Positive
222.16
Positive
230.65
Positive
Market Momentum
8.73
Negative
66.78
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹58.51B | 16.07 | ― | 0.43% | 25.13% | 17.12% | |
66 Neutral | ₹52.83B | 12.92 | ― | ― | 14.63% | 0.16% | |
65 Neutral | ₹66.35B | 27.60 | ― | 0.29% | 22.32% | 17.78% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹40.12B | 41.61 | ― | ― | -3.48% | ― | |
54 Neutral | ₹43.62B | 17.80 | ― | ― | -6.77% | 70.81% | |
49 Neutral | ₹15.07B | 6.99 | ― | ― | 39.48% | -8.51% |
* General Sector Average
IN:INDOSTAR
IndoStar Capital Finance Limited
269.30
-46.15
-14.63%
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135.93%
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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.