BSE:541336

Stock Analysis Report

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

Fundamentals

High growth potential and fair value.

Risks

  • IndoStar Capital Finance has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-0.3%

BSE:541336

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-38.3%

BSE:541336

-3.2%

IN Consumer Finance

-14.7%

IN Market

541336 underperformed the Consumer Finance industry which returned -3.1% over the past year.

541336 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

541336IndustryMarket
7 Day-0.3%-3.6%-2.1%
30 Day-12.9%1.9%-3.9%
90 Day-28.0%-10.2%-10.1%
1 Year-37.9%-38.3%-2.5%-3.2%-12.9%-14.7%
3 Yearn/a59.3%56.0%17.7%11.5%
5 Yearn/a233.9%218.2%35.4%22.5%

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 based on future cash flows and its price relative to the stock market?

9.85x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

IndoStar Capital Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

IndoStar Capital Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

IndoStar Capital Finance is good value based on earnings compared to the IN Consumer Finance industry average.

IndoStar Capital Finance is good value based on earnings compared to the India market.


Price Based on Expected Growth

IndoStar Capital Finance is good value based on expected growth next year.


Price Based on Value of Assets

IndoStar Capital Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is IndoStar Capital Finance expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

IndoStar Capital Finance's revenue is expected to grow significantly at over 20% yearly.

IndoStar Capital Finance's earnings are expected to grow significantly at over 20% yearly.

IndoStar Capital Finance's revenue growth is expected to exceed the India market average.

IndoStar Capital Finance's earnings growth is expected to exceed the India market average.

IndoStar Capital Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if IndoStar Capital Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

IndoStar Capital Finance's year on year earnings growth rate has been positive over the past 5 years.

IndoStar Capital Finance's 1-year earnings growth exceeds its 5-year average (25.2% vs 11.5%)

IndoStar Capital Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (25.2% vs 15%).


Return on Equity

IndoStar Capital Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

IndoStar Capital Finance used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if IndoStar Capital Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is IndoStar Capital Finance's financial position?


Financial Position Analysis

IndoStar Capital Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

IndoStar Capital Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

IndoStar Capital Finance's level of debt (300.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (167.3% vs 300.2% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on IndoStar Capital Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

0.72%

Current Dividend Yield


Dividend Yield and Payments Analysis

IndoStar Capital Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

IndoStar Capital Finance's dividend is below the markets top 25% of dividend payers in India (2.64%).

It is too early to tell whether IndoStar Capital Finance has stable dividend payments.

IndoStar Capital Finance only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (14x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of IndoStar Capital Finance's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Ramachandran Sridhar (61yo)

2.3yrs

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

Ramachandran's remuneration is higher than average for companies of similar size in India.

Ramachandran's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

57yo

Average Age

The average tenure for the IndoStar Capital Finance management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

54.5yo

Average Age

The average tenure for the IndoStar Capital Finance board of directors is less than 3 years, this suggests a new board.


Insider Trading

IndoStar Capital Finance individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,810,80002 Jul 19
Nishant Kotak
EntityIndividual
Shares5,000
Max Price₹362.16
Sell₹3,633,11520 Jun 19
Nishant Kotak
EntityIndividual
Shares10,000
Max Price₹363.31
Buy₹85,427,81029 May 19
Ecp Iii Fvci Pte Ltd
EntityCompany
Shares235,000
Max Price₹394.44
Buy₹20,712,00103 Apr 19
Ecp Iii Fvci Pte Ltd
EntityCompany
Shares57,006
Max Price₹373.42

Ownership Breakdown


Management Team

  • Ramachandran Sridhar (61yo)

    Executive Vice Chairman & CEO

    • Tenure: 2.3yrs
    • Compensation: ₹55.64m
  • Pankaj Thapar (57yo)

    Chief Financial Officer

    • Tenure: 0.0yrs
    • Compensation: ₹31.43m
  • Prabhat Tripathy

    Business Head of Retail Home Finance

    • Tenure: 1.8yrs
  • Ajay Kanal (50yo)

    Head of Operations

    • Tenure: 1.8yrs
  • Jitendra Bhati

    Senior VP of Compliance & Secretarial

    • Tenure: 0.0yrs
    • Compensation: ₹8.97m
  • Prashant Joshi

    Chief Operating Officer

    • Tenure: 0.0yrs
  • Benaifer Palsetia

    Chief Human Resources Officer

    • Tenure: 1.8yrs
  • Nilufer Mullanfiroze

    Head of Products & Portfolio Management

    • Tenure: 1.8yrs
  • Hansraj Thakur

    Business Head of SME Finance

    • Tenure: 1.8yrs
  • A. Gowthaman

    Business Head of Vehicle Finance

    • Tenure: 1.8yrs

Board Members

  • Alok Oberoi (54yo)

    Non-Executive Director

    • Tenure: 8.3yrs
  • Bobby Parikh (55yo)

    Non-Executive Independent Director

    • Tenure: 8.0yrs
    • Compensation: ₹1.85m
  • Dinesh Mehrotra (66yo)

    Non-Executive Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹1.73m
  • Ramachandran Sridhar (61yo)

    Executive Vice Chairman & CEO

    • Tenure: 2.3yrs
    • Compensation: ₹55.64m
  • Shailesh Shirali (49yo)

    MD, Head of Corporate Lending & Markets and Whole-Time Director

    • Tenure: 0.2yrs
    • Compensation: ₹57.18m
  • Dhanpal Jhaveri (50yo)

    Non-Executive Chairman

    • Tenure: 2.2yrs
  • Naina Murthy (46yo)

    Non-Executive Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹1.47m
  • Hemant Kaul (63yo)

    Non Executive Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹1.50m

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: ₹25.480b
  • Shares outstanding: 92.27m
  • 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. The company offers secured corporate lending  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:58
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.