NSEI:INDOSTAR

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

Good value with acceptable track record.


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

-4.4%

INDOSTAR

3.2%

IN Consumer Finance

3.8%

IN Market


1 Year Return

-32.8%

INDOSTAR

48.8%

IN Consumer Finance

6.0%

IN Market

Return vs Industry: INDOSTAR underperformed the Indian Consumer Finance industry which returned 48.8% over the past year.

Return vs Market: INDOSTAR underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

INDOSTARIndustryMarket
7 Day-4.4%3.2%3.8%
30 Day-15.0%6.8%2.9%
90 Day-42.2%15.7%2.9%
1 Year-32.3%-32.8%49.8%48.8%8.2%6.0%
3 Yearn/a83.5%79.7%23.0%16.7%
5 Yearn/a271.4%254.9%43.6%30.0%

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

Valuation

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

6.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INDOSTAR (₹191.5) is trading above our estimate of fair value (₹35.31)

Significantly Below Fair Value: INDOSTAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INDOSTAR is good value based on its PE Ratio (6.8x) compared to the Consumer Finance industry average (13.3x).

PE vs Market: INDOSTAR is good value based on its PE Ratio (6.8x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: INDOSTAR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: INDOSTAR is good value based on its PB Ratio (0.6x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is IndoStar Capital Finance forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDOSTAR's forecast earnings growth (16% per year) is above the savings rate (7.6%).

Earnings vs Market: INDOSTAR's earnings (16% per year) are forecast to grow slower than the Indian market (18% per year).

High Growth Earnings: INDOSTAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: INDOSTAR's revenue (8.4% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: INDOSTAR's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INDOSTAR's Return on Equity is forecast to be low in 3 years time (8.6%).


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

Earnings Trend: INDOSTAR's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: INDOSTAR's earnings growth over the past year (25.2%) exceeds its 5-year average (11.5% per year).

Earnings vs Industry: INDOSTAR earnings growth over the past year (25.2%) exceeded the Consumer Finance industry 15%.


Return on Equity

High ROE: INDOSTAR's Return on Equity (8.5%) is considered low.


Return on Assets

ROA vs Industry: INDOSTAR's Return on Assets is below or equal to the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate INDOSTAR's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is IndoStar Capital Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: INDOSTAR has a low level of unsold assets or inventory.

Debt Coverage by Assets: INDOSTAR's debt is covered by short term assets (assets are 1.319800x debt).


Financial Institutions Analysis

Asset Level: INDOSTAR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if INDOSTAR has a sufficient allowance for bad loans.

Low Risk Liabilities: INDOSTAR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if INDOSTAR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: INDOSTAR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if INDOSTAR has an appropriate level of bad loans.


Next Steps

Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.4%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: INDOSTAR's dividend (1.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: INDOSTAR's dividend (1.04%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: Too early to tell whether INDOSTAR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if INDOSTAR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.1%), INDOSTAR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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?

1.9yrs

Average management tenure


CEO

Ramachandran Sridhar (61yo)

2.5yrs

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: Insufficient data to establish whether Ramachandran's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Ramachandran's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: INDOSTAR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Board: INDOSTAR's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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: 2.5yrs
    • Compensation: ₹55.64m
  • Prabhat Tripathy

    Business Head of Retail Home Finance

    • Tenure: 1.9yrs
  • Ajay Kanal (50yo)

    Head of Operations

    • Tenure: 1.9yrs
  • Jitendra Bhati

    Senior VP of Compliance & Secretarial

    • Tenure: 0yrs
    • Compensation: ₹8.97m
  • Prashant Joshi

    Chief Operating Officer

    • Tenure: 0yrs
  • Benaifer Palsetia

    Chief Human Resources Officer

    • Tenure: 1.9yrs
  • Nilufer Mullanfiroze

    Head of Products & Portfolio Management

    • Tenure: 1.9yrs
  • Hansraj Thakur

    Business Head of SME Finance

    • Tenure: 1.9yrs
  • A. Gowthaman

    Business Head of Vehicle Finance

    • Tenure: 1.9yrs
  • Shreejit Menon

    Business Head of Affordable Home Finance

    • Tenure: 1.9yrs

Board Members

  • Alok Oberoi (54yo)

    Non-Executive Director

    • Tenure: 8.5yrs
  • Bobby Parikh (55yo)

    Non-Executive Independent Director

    • Tenure: 8.2yrs
    • Compensation: ₹1.85m
  • Dinesh Mehrotra (66yo)

    Non-Executive Independent Director

    • Tenure: 1.7yrs
    • Compensation: ₹1.73m
  • Ramachandran Sridhar (61yo)

    Executive Vice Chairman & CEO

    • Tenure: 2.5yrs
    • Compensation: ₹55.64m
  • Shailesh Shirali (49yo)

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

    • Tenure: 0.3yrs
    • Compensation: ₹57.18m
  • Dhanpal Jhaveri (50yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
  • Naina Murthy (46yo)

    Non-Executive Independent Director

    • Tenure: 1.7yrs
    • Compensation: ₹1.47m
  • Hemant Kaul (63yo)

    Non Executive Independent Director

    • Tenure: 1.7yrs
    • 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: INDOSTAR
  • Exchange: NSEI
  • Founded: 2009
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹17.669b
  • 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. 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 Analysis2019/10/21 12:51
End of Day Share Price2019/10/18 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.