Check Before You Invest : Indostar Capital Finance Ltd

Q: Which industry/sub-sector does Indostar Capital Finance Ltd belong to?

Indostar Capital Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Indostar Capital Finance Ltd a good quality company?

Indostar Capital Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Indostar Capital Finance Ltd undervalued or overvalued?

Indostar Capital Finance Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 5.89, Historic Median: 5.84. Price to Book, Current: 0.79, Historic Median: 0.85. Price to Sales, Current: 2.49, Historic Median: 2.39. EV to EBITDA, Current: 20.69, Historic Median: 9.03

Q: Is Indostar Capital Finance Ltd a good buy now?

Indostar Capital Finance Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Operating Income growth is 27.31% for FY-2025, which is above its 5-year CAGR of -2.55%, indicating faster growth.

Q: Return on Assets of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Return on Asset is 0.4%, which is in line with its 5-year historical median of 0.4%, indicating stable earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 3.74, Historic Median: 3.74. PPOP (%), Current: -5.09, Historic Median: -5.09. RoA (%), Current: 0.4, Historic Median: 0.4

Q: Return on Equity (ROE) of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Return on Equity is 1.6% for FY-2025, which is in line with its 5-year historical median of 1.6%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -5.09% for FY-2025, which is in line with its 5-year median(-5.09%), indicating stable margins.

Q: Net Profit Margin of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 3.74% for FY-2025, which is in line with its 5-year median( 3.74%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

Indostar Capital Finance Ltd return on invested capital (ROIC) is 5.35% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Indostar Capital Finance Ltd

BSE: 541336 NSE: INDOSTAR ISIN: INE896L01010

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Indostar Capital Finance Ltd belong to?

Indostar Capital Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Indostar Capital Finance Ltd a good quality company?

Indostar Capital Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Indostar Capital Finance Ltd undervalued or overvalued?

Indostar Capital Finance Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	5.89	5.84
Price to Book	0.79	0.85
Price to Sales	2.49	2.39
EV to EBITDA	20.69	9.03

Q.4 Is Indostar Capital Finance Ltd a good buy now?

Indostar Capital Finance Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Operating Income growth is 27.31% for FY-2025, which is above its 5-year CAGR of -2.55%, indicating faster growth.

Q.2 Return on Assets of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Return on Asset is 0.4%, which is in line with its 5-year historical median of 0.4%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	3.74	3.74
PPOP (%)	-5.09	-5.09
RoA (%)	0.4	0.4

Q.3 Return on Equity (ROE) of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Return on Equity is 1.6% for FY-2025, which is in line with its 5-year historical median of 1.6%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -5.09% for FY-2025, which is in line with its 5-year median(-5.09%), indicating stable margins.

Q.5 Net Profit Margin of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 3.74% for FY-2025, which is in line with its 5-year median( 3.74%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

Indostar Capital Finance Ltd return on invested capital (ROIC) is 5.35% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Total Asset growth is 19.76% for FY-2025, which is above its 5-year CAGR of 5.29%, indicating faster growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Indostar Capital Finance Ltd?

Indostar Capital Finance Ltd Capital Adequacy ratio (CAR) is 28.46% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Indostar Capital Finance Ltd?

Q.1 Promoter shareholding and pledge status of Indostar Capital Finance Ltd?

Promoters hold 70.38% of the Indostar Capital Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Indostar Capital Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Indostar Capital Finance Ltd vs Industry Peers?

Indostar Capital Finance Ltd AUM CAGR is 5.29%, compared to the 5-year industry median CAGR of 9.71%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Indostar Capital Finance Ltd vs industry peers

Indostar Capital Finance Ltd profit metrics are below the industry median level of 4.76%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	3.74	12.87
PPOP (%)	-5.09	-
RoA (%)	0.4	1.4

Q.3 Operating efficiency of Indostar Capital Finance Ltd vs industry peers?

Indostar Capital Finance Ltd ROCE (6.6) is above the industry median of (4.15); while the current ROE (1.6) are below than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	3.74	12.87
PPOP (%)	-5.09	-
RoA (%)	0.4	1.4
ROCE (%)	7.4	4.15
ROE (%)	1.6	2.3

Valuation & price assessment

Q.1 Stock return of Indostar Capital Finance Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of -6.25% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-6.3%	16.9%	-23%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	5.89	5.84	29.12
Price to Book	0.79	0.85	1.11
Price to Sales	2.49	2.39	9.10
EV to EBITDA	20.69	9.03	11.77

Q.3 Valuation ratios of Indostar Capital Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.79 is lower than its historical median of 0.85, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : Indostar Capital Finance Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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