BSE:541336

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

IndoStar Capital Finance Limited, a non-banking financial company, provides various financing services to corporates and small and medium enterprises in India.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has IndoStar Capital Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 541336 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

541336

-1.4%

IN Consumer Finance

-0.3%

IN Market


1 Year Return

-13.2%

541336

-2.6%

IN Consumer Finance

2.0%

IN Market

Return vs Industry: 541336 underperformed the Indian Consumer Finance industry which returned -1.8% over the past year.

Return vs Market: 541336 underperformed the Indian Market which returned 1.6% over the past year.


Shareholder returns

541336IndustryMarket
7 Day-2.6%-1.4%-0.3%
30 Day-6.6%7.0%3.8%
90 Day-6.9%36.4%19.7%
1 Year-12.4%-13.2%0.08%-2.6%3.9%2.0%
3 Yearn/a35.1%27.0%-0.6%-5.3%
5 Yearn/a170.9%147.1%27.0%17.4%

Price Volatility Vs. Market

How volatile is IndoStar Capital Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is IndoStar Capital Finance undervalued compared to its fair value and its price relative to the market?

0.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 541336's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 541336's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 541336 is unprofitable, so we can't compare its PE Ratio to the IN Consumer Finance industry average.

PE vs Market: 541336 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 541336's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 541336 is overvalued based on its PB Ratio (0.9x) compared to the IN Consumer Finance industry average (0.5x).


Next Steps

Future Growth

How is IndoStar Capital Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

113.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 541336 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7.2%).

Earnings vs Market: 541336 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 541336's is expected to become profitable in the next 3 years.

Revenue vs Market: 541336's revenue (16.3% per year) is forecast to grow faster than the Indian market (9.6% per year).

High Growth Revenue: 541336's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 541336's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has IndoStar Capital Finance performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 541336 is currently unprofitable.

Growing Profit Margin: 541336 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 541336 is unprofitable, and losses have increased over the past 5 years at a rate of 11.2% per year.

Accelerating Growth: Unable to compare 541336's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 541336 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-2.8%).


Return on Equity

High ROE: 541336 has a negative Return on Equity (-12.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is IndoStar Capital Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 541336's short term assets (₹85.6B) exceed its short term liabilities (₹405.2M).

Long Term Liabilities: 541336's short term assets (₹85.6B) exceed its long term liabilities (₹69.2B).


Debt to Equity History and Analysis

Debt Level: 541336's debt to equity ratio (249.2%) is considered high.

Reducing Debt: 541336's debt to equity ratio has increased from 200.2% to 249.2% over the past 5 years.

Debt Coverage: 541336's debt is well covered by operating cash flow (26.1%).

Interest Coverage: Insufficient data to determine if 541336's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is IndoStar Capital Finance current dividend yield, its reliability and sustainability?

0.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 541336's dividend (0.79%) is higher than the bottom 25% of dividend payers in the Indian market (0.66%).

High Dividend: 541336's dividend (0.79%) is low compared to the top 25% of dividend payers in the Indian market (2.76%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 541336 has been paying a dividend for less than 10 years.

Growing Dividend: 541336 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: 541336 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 541336's dividends in 3 years are forecast to be thoroughly covered by earnings (7.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Ramachandran Sridhar (62 yo)

3.33yrs

Tenure

₹55,640,000

Compensation

Mr. Ramchandran Sridhar has been Executive Vice Chairman and Chief Executive Officer at Indostar Capital Finance Limited since April 18, 2017. Mr. Sridhar served as Managing Director and Chief Executive Of ...


CEO Compensation Analysis

Compensation vs Market: Ramachandran's total compensation ($USD739.77K) is above average for companies of similar size in the Indian market ($USD368.64K).

Compensation vs Earnings: Ramachandran's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Ramachandran Sridhar
Executive Vice Chairman & CEO3.33yrs₹55.64m0.26%
₹ 79.2m
Jitendra Bhati
Senior VP of Compliance & Secretarialno data₹8.97mno data
Benaifer Palsetia
Chief Human Resources Officer2.75yrsno datano data
Amol Joshi
Chief Financial Officer0.92yrno datano data
Prashant Joshi
Chief Operating & Risk Officerno datano datano data
Hansraj Thakur
Business Head of SME Financeno datano datano data
A. Gowthaman
Business Head of Vehicle Financeno datano datano data
Shreejit Menon
Business Head of Affordable Home Finance - IndoStar Home Finance Private Limited2.75yrsno datano data
Shailesh Shirali
MD and Head of Corporate Lending & Markets8.58yrs₹57.18mno data

2.8yrs

Average Tenure

Experienced Management: 541336's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ramachandran Sridhar
Executive Vice Chairman & CEO3.33yrs₹55.64m0.26%
₹ 79.2m
Bobby Parikh
Non-Executive Independent Chairman0.083yr₹1.85mno data
Dhanpal Jhaveri
Non-Executive Director9.92yrsno data0.00081%
₹ 248.8k
Aditya Joshi
Additional Non-Executive Non-Independent Director0.083yrno datano data
Naina Murthy
Non-Executive Independent Director2.5yrs₹1.47mno data
Hemant Kaul
Non Executive Independent Director2.5yrs₹1.50mno data
Sridhar Rengan
Additional Non-Executive Non-Independent Director0.083yrno datano data
Vibhor Talreja
Additional Non-Executive Non-Independent Director0.083yrno datano data

1.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 541336's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 541336 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.5%.


Top Shareholders

Company Information

IndoStar Capital Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IndoStar Capital Finance Limited
  • Ticker: 541336
  • Exchange: BSE
  • Founded: 2009
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹30.719b
  • Shares outstanding: 123.17m
  • Website: https://www.indostarcapital.com

Number of Employees


Location

  • IndoStar Capital Finance Limited
  • Tower 2A, One Indiabulls Center
  • 20th Floor
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INDOSTARNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2018
541336BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2018

Biography

IndoStar Capital Finance Limited, a non-banking financial company, provides various financing services to corporates and small and medium enterprises in India. It offers secured corporate lending products, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 12:34
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.