Motilal Oswal's research report on Indostar Capital Finance
GS3 improved ~1pp QoQ aided by an ARC transaction; credit costs elevated IndoStar Capital Finance (IndoStar) delivered a weak performance in 2QFY26, with muted disbursements and weak AUM growth as it continued to follow tightened underwriting norms and prioritized asset quality. However, the company expects growth momentum to pick up in 2HFY26, supported by improving business activity and a gradual revival in demand.
Outlook
Maintain BUY rating on the stock with a TP of INR285 (premised on 1x Sep’27E BVPS).
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