Buy Indostar Capital Finance; target of Rs 315: Motilal Oswal

Buy

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Motilal Oswal's research report on Indostar Capital Finance

Indostar Capital Finance (Indostar) reported healthy business momentum in 2QFY25. Key highlights: 1) consolidated disbursements grew ~36% YoY to ~INR17.2b and retail AUM rose ~35% YoY to ~INR99b; 2) the company added 594 employees in 2QFY25, taking the total count to ~5,170; 3) the CV segment contributed ~87% to the retail disbursement mix; and 4) asset quality was broadly stable with standalone GS3 remaining steady at ~5% and standalone NNPA rising ~15bp QoQ to 2.5%.

Outlook

we expect credit costs to remain benign in the near future. The risk-reward is favorable at 1x FY26E P/BV. Reiterate BUY rating on the stock with a TP of INR315 (premised on 1.2x Sep’26E 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.

Indostar Capital Finance_22102024_Motilal Oswal