Motilal Oswal's research report on Indostar Capital Finance
Minor seasonal deterioration in asset quality Indostar Capital Finance (Indostar) reported healthy business momentum in 1QFY25. Key highlights: 1) Disbursements grew ~46% YoY to ~INR16.3b and Retail AUM grew ~34% YoY to ~INR92b; 2) It added 579 employees in 1Q, taking the total count to ~4,578; 3) The CV segment contributed ~87% to the retail disbursement mix; and 4) Minor seasonal deterioration in asset quality with GS3 increasing ~10bp QoQ to ~4.2%.
Outlook
we expect credit costs to remain benign in the near future. The risk-reward is favorable at 0.9x FY26E P/BV. We have a BUY rating on the stock with a TP of INR290 (based on 1.1x FY26E BVPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
