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IndoStar Capital Finance

NSEI:INDOSTAR
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
INDOSTAR
NSEI
₹34B
Market Cap
  1. Home
  2. IN
  3. Diversified Financials
Company description

IndoStar Capital Finance Limited, a non-banking financial company, provides various financing services to corporates and small and medium enterprises in India. The last earnings update was 108 days ago. More info.


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INDOSTAR Share Price and Events
7 Day Returns
3.7%
NSEI:INDOSTAR
12.9%
IN Consumer Finance
4.9%
IN Market
1 Year Returns
-39.9%
NSEI:INDOSTAR
17.3%
IN Consumer Finance
0.8%
IN Market
INDOSTAR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IndoStar Capital Finance (INDOSTAR) 3.7% -12.1% 11.6% -39.9% - -
IN Consumer Finance 12.9% 3.8% 23% 17.3% 118.2% 270.2%
IN Market 4.9% -1.6% 9.4% 0.8% 39.5% 45.6%
1 Year Return vs Industry and Market
  • INDOSTAR underperformed the Consumer Finance industry which returned 17.3% over the past year.
  • INDOSTAR underperformed the Market in India which returned 0.8% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is IndoStar Capital Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IndoStar Capital Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IndoStar Capital Finance.

NSEI:INDOSTAR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ₹409.12 * 9.7%
₹39.78
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. ₹409.12
Discount Rate (Cost of Equity) See below 19.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:INDOSTAR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.721 (1 + (1- 35%) (169.02%))
1.344
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.34
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.344 * 8.6%)
19.11%

Discounted Cash Flow Calculation for NSEI:INDOSTAR using Excess Returns Model Model

The calculations below outline how an intrinsic value for IndoStar Capital Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NSEI:INDOSTAR Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.7% – 19.11%) * ₹409.12)
₹-38.39
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹-38.39 / (19.11% - 7.55%)
₹-332.19
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹409.12 + ₹-332.19
₹76.92
NSEI:INDOSTAR Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹76.92
Current discount Discount to share price of ₹357.80
= -1 x (₹357.80 - ₹76.92) / ₹76.92
-365.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of IndoStar Capital Finance is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IndoStar Capital Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IndoStar Capital Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:INDOSTAR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹26.56
NSEI:INDOSTAR Share Price ** NSEI (2019-05-21) in INR ₹357.8
India Consumer Finance Industry PE Ratio Median Figure of 70 Publicly-Listed Consumer Finance Companies 18.3x
India Market PE Ratio Median Figure of 2,757 Publicly-Listed Companies 15.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IndoStar Capital Finance.

NSEI:INDOSTAR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:INDOSTAR Share Price ÷ EPS (both in INR)

= 357.8 ÷ 26.56

13.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does IndoStar Capital Finance's expected growth come at a high price?
Raw Data
NSEI:INDOSTAR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
17.4%per year
India Consumer Finance Industry PEG Ratio Median Figure of 15 Publicly-Listed Consumer Finance Companies 0.94x
India Market PEG Ratio Median Figure of 561 Publicly-Listed Companies 1.3x

*Line of best fit is calculated by linear regression .

NSEI:INDOSTAR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.47x ÷ 17.4%

0.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IndoStar Capital Finance is good value based on expected growth next year.
Price based on value of assets
What value do investors place on IndoStar Capital Finance's assets?
Raw Data
NSEI:INDOSTAR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹325.20
NSEI:INDOSTAR Share Price * NSEI (2019-05-21) in INR ₹357.8
India Consumer Finance Industry PB Ratio Median Figure of 83 Publicly-Listed Consumer Finance Companies 0.99x
India Market PB Ratio Median Figure of 3,638 Publicly-Listed Companies 1.05x
NSEI:INDOSTAR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:INDOSTAR Share Price ÷ Book Value per Share (both in INR)

= 357.8 ÷ 325.20

1.1x

* Primary Listing of IndoStar Capital Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IndoStar Capital Finance is overvalued based on assets compared to the IN Consumer Finance industry average.
X
Value checks
We assess IndoStar Capital Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. IndoStar Capital Finance has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IndoStar Capital Finance expected to grow at an attractive rate?
  • IndoStar Capital Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • IndoStar Capital Finance's earnings growth is expected to exceed the India market average.
  • IndoStar Capital Finance's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:INDOSTAR Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:INDOSTAR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 17.4%
NSEI:INDOSTAR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 31.1%
India Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 17.1%
India Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
India Market Earnings Growth Rate Market Cap Weighted Average 16.9%
India Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:INDOSTAR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:INDOSTAR Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31
2021-03-31 11,654 3
2020-03-31 9,446 2,852 3
2019-03-31 6,374 2,399 3
NSEI:INDOSTAR Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 6,075 2,312
2018-09-30 5,742 1,993
2018-06-30 5,149 2,048
2018-03-31 5,140 -2,577 2,244
2017-03-31 4,054 -6,900 2,108
2016-03-31 3,600 -5,427 1,916

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IndoStar Capital Finance's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).
  • IndoStar Capital Finance's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:INDOSTAR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from IndoStar Capital Finance Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:INDOSTAR Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31
2020-03-31 30.92 30.92 30.92 1.00
2019-03-31 26.01 26.01 26.01 1.00
NSEI:INDOSTAR Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 26.56
2018-09-30 23.83
2018-06-30 25.36
2018-03-31 28.53
2017-03-31 28.69
2016-03-31 26.75

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IndoStar Capital Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess IndoStar Capital Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IndoStar Capital Finance has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IndoStar Capital Finance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 is less than its 5-year average (4.6% vs 13.5%)
  • IndoStar Capital Finance's earnings growth has not exceeded the IN Consumer Finance industry average in the past year (4.6% vs 29%).
Earnings and Revenue History
IndoStar Capital Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IndoStar Capital Finance Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:INDOSTAR Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 6,075.05 2,311.52 1,389.75
2018-09-30 5,742.25 1,993.22 1,322.35
2018-06-30 5,148.75 2,047.92 1,105.15
2018-03-31 5,139.95 2,243.72 1,025.05
2017-03-31 4,053.89 2,107.95 524.62
2016-03-31 3,600.10 1,916.42 420.67
2015-03-31 2,750.60 1,490.37 300.60
2014-12-31 2,577.93 1,400.95 386.33
2014-09-30 2,405.35 1,311.46 336.30
2014-06-30 2,254.00 1,216.41 325.25
2014-03-31 2,102.65 1,121.32 272.86
2013-12-31 1,984.05 1,070.73 288.14
2013-09-30 1,865.41 1,020.19 286.55
2013-06-30 1,762.44 960.57 288.73
2013-03-31 1,659.48 900.94 290.92
2012-12-31 1,447.11 786.27 281.93
2012-09-30 1,234.75 671.61 273.68
2012-06-30 1,021.55 601.86 242.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IndoStar Capital Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IndoStar Capital Finance used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
  • 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.
X
Past performance checks
We assess IndoStar Capital Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IndoStar Capital Finance has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is IndoStar Capital Finance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IndoStar Capital Finance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of IndoStar Capital Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IndoStar Capital Finance Company Filings, last reported 4 months ago.

NSEI:INDOSTAR Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 29,099.50 58,031.70 5,090.90
2018-09-30 29,099.50 58,031.70 5,090.90
2018-06-30 21,371.26 48,954.03 1,278.34
2018-03-31 21,371.26 48,954.03 1,278.34
2017-03-31 19,027.54 34,243.75 651.30
2016-03-31 15,418.02 30,186.65 3,596.09
2015-03-31 12,852.35 25,737.87 4,856.46
2014-12-31 12,852.35 25,737.87 4,856.46
2014-09-30
2014-06-30 11,356.52 18,981.86 4,681.70
2014-03-31 11,356.48 18,981.86 4,681.80
2013-12-31 11,356.48 18,981.86 4,681.80
2013-09-30 10,759.96 15,769.66 3,636.38
2013-06-30 10,759.96 15,769.66 3,636.38
2013-03-31 10,249.61 11,043.26 2,820.98
2012-12-31 10,249.61 8,429.03 2,820.98
2012-09-30
2012-06-30 9,346.17 993.34 447.74
  • IndoStar Capital Finance's level of debt (199.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (167.1% vs 199.4% 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.
X
Financial health checks
We assess IndoStar Capital Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IndoStar Capital Finance has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.56%
Current annual income from IndoStar Capital Finance dividends.
If you bought ₹2,000 of IndoStar Capital Finance shares you are expected to receive ₹11 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • IndoStar Capital Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.53%).
  • IndoStar Capital Finance's dividend is below the markets top 25% of dividend payers in India (2.02%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:INDOSTAR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
India Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1401 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:INDOSTAR Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31
2021-03-31
2020-03-31
2019-03-31
NSEI:INDOSTAR Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-02-04 2.000 0.555
2018-10-31 2.000 0.599

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of IndoStar Capital Finance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (26.6x 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.
X
Income/ dividend checks
We assess IndoStar Capital Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IndoStar Capital Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IndoStar Capital Finance has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ramachandran Sridhar
COMPENSATION ₹34,575,150
AGE 60
TENURE AS CEO 2.1 years
CEO Bio

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 Officer at Shriram Capital Limited since April 1, 2012. Mr. Sridhar was responsible for activities like Capital Markets Relationship (Banks, Investment Banks, private equity firms and Rating Agencies), Strategic Planning and investor relations for all finance arms of the Shriram Group. Mr. Sridhar served as the Managing Director of Shriram Capital Limited from 2000 to September 14, 2010. He served as Managing Director and Chief Executive Officer of Shriram Transport Finance Company Limited since April 2000 until March 31, 2012. He has over two decades of experience in the financial service sector, especially in commercial vehicle financing. Mr. Sridhar served as the Managing Director at Shriram Transport Finance Company Limited from September 2000 to September 14, 2010. He joined Shriram Group in 1985 and served as its President since 1994. He served as Managing Director of Shriram Asset Management Company Limited until March 31, 2007. He has been the Chairman of Finance Industry Development Council since September 20, 2011. Mr. Sridhar also represented Shriram Group on the Board of Shriram Life Insurance Company Limited. At present, he is an Independent Director on the Board of Shriram Properties Private Limited and Tata Motors Finance Limited. He serves as Director of Shriram Equipment Finance Company Ltd, Shriram Holdings (Madras) Private Limited, IntegidLed Enterprises (India) Ltd., Ceylinco Shriram Capital Management Services Company Private Limited, Shriram Powergen Limited, Ashley Transport Services Limited and Shriram Chits (Maharashtra) Limited. He serves as Member of Governing Council at Shriram Group Pvt. Co. Mr. Sridhar has been a Director of Finance Industry Development Council since September 20, 2011 and served as Whole Time Director of Shriram Capital Limited since April 1, 2012 until September 11, 2015. He served as a Non Executive & Non-Independent Director of Shriram Transport Finance Company Limited from May 8, 2012 to August 7, 2015 and previously served as its Director from September 14, 2000 to March 31, 2012. He served as a Director of Shriram Asset Management Company Limited until March 31, 2007. He is a General Secretary of the Western India Hire Purchase Association and Vice President of Federation of Indian Hire Purchase Association. He participates in social activities and is actively associated with Shri Shanmukhananda Fine Arts & Sangeetha Sabha, Mumbai and Sri Krishna Gana Sabha, Chennai. He is the recipient of Ernst & Young's entrepreneur of the year - Manager Award 2011 and Business Achiever Award from Institute of Chartered Accountants of India (ICAI) for the year 2010-2011. He is a Fellow Member of the Institute of Chartered Accountants of India. Mr. Sridhar has completed Advanced Management Program at Harvard Business School and a Bachelor's degree in Science from Mangalore University, India.

CEO Compensation
  • Insufficient data for Ramachandran to compare compensation growth.
  • Ramachandran's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the IndoStar Capital Finance management team in years:

1.5
Average Tenure
56
Average Age
  • The average tenure for the IndoStar Capital Finance management team is less than 2 years, this suggests a new team.
Management Team

Ramachandran Sridhar

TITLE
Executive Vice Chairman & CEO
COMPENSATION
₹35M
AGE
60
TENURE
2.1 yrs

Pankaj Thapar

TITLE
Chief Financial Officer
COMPENSATION
₹26M
AGE
56

Jitendra Bhati

TITLE
Company Secretary & Compliance officer
COMPENSATION
₹10M

Prashant Joshi

TITLE
Chief Operating Officer

Ajay Kanal

TITLE
Head of Operations
AGE
49
TENURE
1.5 yrs

Benaifer Palsetia

TITLE
Chief Human Resources Officer
TENURE
1.5 yrs

Nilufer Mullanfiroze

TITLE
Head of Products & Portfolio Management
TENURE
1.5 yrs

Hansraj Thakur

TITLE
Business Head of SME Finance
TENURE
1.5 yrs

A. Gowthaman

TITLE
Business Head of Vehicle Finance
TENURE
1.5 yrs

Prabhat Tripathy

TITLE
Business Head of Retail Home Finance
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the IndoStar Capital Finance board of directors in years:

2
Average Tenure
53.5
Average Age
  • The average tenure for the IndoStar Capital Finance board of directors is less than 3 years, this suggests a new board.
Board of Directors

Dhanpal Jhaveri

TITLE
Non-Executive Chairman
AGE
49
TENURE
1.9 yrs

Ramachandran Sridhar

TITLE
Executive Vice Chairman & CEO
COMPENSATION
₹35M
AGE
60
TENURE
2.1 yrs

Sameer Sain

TITLE
Non-Executive Director
AGE
46
TENURE
8.1 yrs

Bobby Parikh

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
AGE
54
TENURE
7.8 yrs

Dinesh Mehrotra

TITLE
Non-Executive Independent Director
COMPENSATION
₹350K
AGE
65
TENURE
1.3 yrs

Alok Oberoi

TITLE
Non-Executive Director
AGE
53
TENURE
8.1 yrs

Hemant Kaul

TITLE
Non Executive Independent Director
COMPENSATION
₹350K
AGE
62
TENURE
1.3 yrs

Naina Murthy

TITLE
Non-Executive Independent Director
COMPENSATION
₹350K
AGE
45
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
03. Apr 19 Buy Ecp Iii Fvci Pte Ltd Company 26. Mar 19 28. Mar 19 57,006 ₹373.42 ₹20,712,001
25. Aug 18 Sell Deepak Bakliwal Individual 24. Aug 18 24. Aug 18 -6,637 ₹445.97 ₹-2,959,909
25. Aug 18 Sell Deepak Bakliwal Individual 21. Aug 18 23. Aug 18 -1,759 ₹472.23 ₹-830,660
20. Aug 18 Sell Deepak Bakliwal Individual 17. Aug 18 17. Aug 18 -355 ₹484.00 ₹-171,820
14. Aug 18 Sell Deepak Bakliwal Individual 13. Aug 18 14. Aug 18 -31,197 ₹485.00 ₹-14,987,152
14. Aug 18 Sell Rohit Talwalkar Individual 13. Aug 18 13. Aug 18 -8,191 ₹480.00 ₹-3,931,680
14. Aug 18 Sell Deepak Bakliwal Individual 13. Aug 18 14. Aug 18 -11,163 ₹485.00 ₹-5,366,137
17. Jul 18 Sell Deepak Bakliwal Individual 12. Jul 18 12. Jul 18 -6,000 ₹514.00 ₹-3,084,000
12. Jul 18 Sell Prashant Shetty Individual 15. Jun 18 19. Jun 18 -15,000 ₹568.25 ₹-8,523,787
12. Jul 18 Sell Jayant Gunjal Individual 10. Jul 18 11. Jul 18 -70,353 ₹520.04 ₹-36,586,160
12. Jul 18 Sell Deepak Bakliwal Individual 09. Jul 18 10. Jul 18 -11,552 ₹519.59 ₹-5,995,113
12. Jul 18 Sell Rohit Talwalkar Individual 10. Jul 18 10. Jul 18 -23,809 ₹519.59 ₹-12,370,917
18. Jun 18 Sell Mamata Pradhan Individual 14. Jun 18 14. Jun 18 -7,000 ₹551.71 ₹-3,861,964
06. Jun 18 Sell Kirtikant Kaviju Individual 04. Jun 18 04. Jun 18 -3,990 ₹582.67 ₹-2,324,853
23. May 18 Sell Nishant Kotak Individual 21. May 18 23. May 18 -38,000 ₹601.50 ₹-22,560,956
X
Management checks
We assess IndoStar Capital Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IndoStar Capital Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Are Insiders Selling IndoStar Capital Finance Limited (NSE:INDOSTAR) Stock?

So before you buy or sell IndoStar Capital Finance Limited (NSE:INDOSTAR), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At IndoStar Capital Finance. … We generally don't like to see insider selling, but the lower the sale price, the more it concerns us

Simply Wall St -

How Much Are IndoStar Capital Finance Limited (NSE:INDOSTAR) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in IndoStar Capital Finance Limited (NSE:INDOSTAR). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At IndoStar Capital Finance.

Simply Wall St -

Here's What IndoStar Capital Finance Limited's (NSE:INDOSTAR) P/E Ratio Is Telling Us

IndoStar Capital Finance has a price to earnings ratio of 14.2, based on the last twelve months. … How Do I Calculate IndoStar Capital Finance's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is IndoStar Capital Finance Limited (NSE:INDOSTAR) Attractive At Its Current PE Ratio?

IndoStar Capital Finance Limited (NSE:INDOSTAR) is currently trading at a trailing P/E of 18.9x, which is lower than the industry average of 23.1x. … While INDOSTAR might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … See our latest analysis for IndoStar Capital Finance

Simply Wall St -

Is IndoStar Capital Finance Limited's (NSE:INDOSTAR) PE Ratio A Signal To Sell For Investors?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for INDOSTAR Price per share = ₹603.6 Earnings per share = ₹28.687 ∴ Price-Earnings Ratio = ₹603.6 ÷ ₹28.687 = 21x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you are inadvertently comparing riskier firms with INDOSTAR, then INDOSTAR’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

Company Info

Description

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 products, including senior secured debt, structured financing, promoter financing, mezzanine funding, structured and acquisition financing, and special situation funding; and real estate financing products, such as structured loans, as well as loans at project level construction of commercial and residential properties. It also provides SME lending products including vanilla, gross turnover, debt consolidator, mortgage and top-up, commercial property purchase, and banking profile based loans to traders, manufacturers, retailers, and self-employed professionals; and vehicle finance for purchase of commercial vehicles, passenger vehicles, and two-wheelers. Further, the company provides housing finance to the salaried and self-employed customers. The company was incorporated in 2009 and is based in Mumbai, India. IndoStar Capital Finance Limited is a subsidiary of IndoStar Capital (Mauritius).

Details
Name: IndoStar Capital Finance Limited
INDOSTAR
Exchange: NSEI
Founded: 2009
₹34,333,596,992
92,257,415
Website: http://www.indostarcapital.com
Address: IndoStar Capital Finance Limited
Tower 2A, One Indiabulls Center,
20th Floor,
Mumbai,
Maharashtra, 400013,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI INDOSTAR Equity Shares National Stock Exchange of India IN INR 21. May 2018
BSE 541336 Equity Shares Mumbai Stock Exchange IN INR 21. May 2018
Number of employees
Current staff
Staff numbers
0
IndoStar Capital Finance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 12:58
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/02/02
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.