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 Analysis

Reasonable growth potential with questionable 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

Stable Share Price: INDOSTAR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.04%

INDOSTAR

10.5%

IN Consumer Finance

8.9%

IN Market


1 Year Return

-40.6%

INDOSTAR

-27.8%

IN Consumer Finance

-30.6%

IN Market

Return vs Industry: INDOSTAR underperformed the Indian Consumer Finance industry which returned -26.9% over the past year.

Return vs Market: INDOSTAR underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

INDOSTARIndustryMarket
7 Day-0.04%10.5%8.9%
30 Day-11.3%-42.2%-24.8%
90 Day36.6%-39.7%-29.4%
1 Year-40.1%-40.6%-27.1%-27.8%-29.2%-30.6%
3 Yearn/a21.1%18.3%-17.0%-21.5%
5 Yearn/a98.7%89.7%-5.4%-10.4%

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

Valuation

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

13.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: INDOSTAR is poor value based on its PE Ratio (13.4x) compared to the Consumer Finance industry average (10.4x).

PE vs Market: INDOSTAR is poor value based on its PE Ratio (13.4x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: INDOSTAR is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

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


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?

38.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDOSTAR's forecast earnings growth (38.9% per year) is above the savings rate (6.5%).

Earnings vs Market: INDOSTAR's earnings (38.9% per year) are forecast to grow faster than the Indian market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INDOSTAR's revenue (14.5% per year) is forecast to grow faster than the Indian market (8.9% per year).

High Growth Revenue: INDOSTAR's revenue (14.5% 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 (7%).


Next Steps

Past Performance

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

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDOSTAR has high quality earnings.

Growing Profit Margin: INDOSTAR's current net profit margins (22.1%) are lower than last year (38%).


Past Earnings Growth Analysis

Earnings Trend: INDOSTAR's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: INDOSTAR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INDOSTAR had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Consumer Finance industry average (15.6%).


Return on Equity

High ROE: INDOSTAR's Return on Equity (5.5%) is considered low.


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 1.3x 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?

0.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INDOSTAR's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: INDOSTAR's dividend (0.81%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

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 (10.8%), INDOSTAR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INDOSTAR's dividends in 3 years are forecast to be thoroughly covered by earnings (8.3% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ramachandran Sridhar (61yo)

2.92s

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 ($USD738.20K) is above average for companies of similar size in the Indian market ($USD348.93K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ramachandran Sridhar
Executive Vice Chairman & CEO2.92yrs₹55.64m0.34% 80.0m
Jitendra Bhati
Senior VP of Compliance & Secretarialno data₹8.97m0.0097% 2.3m
Benaifer Palsetia
Chief Human Resources Officer2.33yrsno datano data
Amol Joshi
Chief Financial Officer0.50yrno 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 Limited2.33yrsno datano data
Shailesh Shirali
MD, Head of Corporate Lending & Markets and Whole-Time Director0.75yr₹57.18mno data

2.3yrs

Average Tenure

Experienced Management: INDOSTAR's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ramachandran Sridhar
Executive Vice Chairman & CEO2.92yrs₹55.64m0.34% 80.0m
Shailesh Shirali
MD, Head of Corporate Lending & Markets and Whole-Time Director0.75yr₹57.18mno data
Alok Oberoi
Non-Executive Director8.92yrsno datano data
Bobby Parikh
Non-Executive Independent Director8.58yrs₹1.85mno data
Dinesh Mehrotra
Non-Executive Independent Director2yrs₹1.73mno data
Dhanpal Jhaveri
Non-Executive Chairman2.75yrsno data0.0011% 251.6k
Naina Murthy
Non-Executive Independent Director2yrs₹1.47mno data
Hemant Kaul
Non Executive Independent Director2yrs₹1.50mno data

2.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: INDOSTAR's board of directors are not considered experienced ( 2.4 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: INDOSTAR 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 6%.


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: INDOSTAR
  • Exchange: NSEI
  • Founded: 2009
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹23.297b
  • Shares outstanding: 92.45m
  • 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, 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. The company also provides SME lending products including self-occupied residential and commercial property loans to traders, manufacturers, businesses, and self-employed professionals; vehicle finance; and housing finance. In addition, it offers investment advisory and asset management services. The company was incorporated in 2009 and is based in Mumbai, India. IndoStar Capital Finance Limited is a subsidiary of IndoStar Capital (Mauritius). 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:19
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.