Recent Price Movement and Market Context
On 25 Nov 2025, Indostar Capital Finance’s share price touched Rs.217.5, its lowest level in the past year. This decline comes after the stock recorded a cumulative return of -9.73% over the last four days. The day’s trading saw the stock underperform its sector by 1.59%, continuing a pattern of relative weakness compared to other Non Banking Financial Companies (NBFCs).
The broader market, represented by the Sensex, opened positively with a gain of 108.22 points but later retreated by 421.92 points to close at 84,587.01, down 0.37%. Despite the Sensex trading near its 52-week high and maintaining a bullish stance above its 50-day and 200-day moving averages, Indostar Capital Finance’s stock remains below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day, signalling persistent downward momentum.
Performance Comparison and Historical Context
Over the past year, Indostar Capital Finance’s stock has recorded a return of -13.64%, contrasting with the Sensex’s positive return of 5.59% during the same period. The stock’s 52-week high was Rs.368.55, indicating a substantial gap of nearly 41% from the current price level. This underperformance extends beyond the recent year, with the stock lagging behind the BSE500 index over one, three-year, and three-month horizons.
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Financial Metrics Highlighting Current Concerns
Indostar Capital Finance’s long-term financial indicators reveal subdued performance. The company’s average Return on Equity (ROE) stands at 1.36%, reflecting limited profitability relative to shareholder equity. Recent data shows a negative ROE of -8, which points to losses in the latest period under review.
Net sales have exhibited minimal growth, with an annual rate of 1.52%, while operating profit has shown a modest rate of 3.37%. These figures suggest constrained expansion and profitability within the company’s core operations. Furthermore, the stock’s Price to Book Value ratio is 0.8, indicating that the market values the company below its book value, which may reflect investor caution or valuation concerns.
Profitability metrics have also shown volatility. Over the past year, profits have declined by 650.8%, a significant contraction that has contributed to the stock’s downward trajectory. Despite the company’s size, domestic mutual funds hold no stake in Indostar Capital Finance, which may indicate limited institutional confidence or interest at current valuations.
Balance Sheet and Quarterly Performance
On a more positive note, the company’s debt-equity ratio for the half-year period is recorded at 1.43 times, which is relatively low for the NBFC sector and may suggest a manageable leverage position. Quarterly Profit After Tax (PAT) stood at Rs.10.49 crores, showing growth of 113.4% compared to the previous four-quarter average. Additionally, Profit Before Tax excluding other income (PBT less OI) reached Rs.10.22 crores, the highest in recent quarters.
These quarterly improvements, however, have not yet translated into sustained upward momentum in the stock price, which continues to face pressure from broader valuation and performance concerns.
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Sector and Market Dynamics
The NBFC sector has experienced mixed performance in recent sessions, with some small-cap stocks leading gains while others, including Indostar Capital Finance, have faced headwinds. The BSE Small Cap index recorded a gain of 0.2% on the day, contrasting with the stock’s decline. This divergence highlights the stock’s relative weakness within its sector and the broader market.
Indostar Capital Finance’s market capitalisation grade is rated at 3, reflecting its mid-tier size within the NBFC universe. The stock’s recent day change was -1.23%, contributing to the ongoing downward trend.
Summary of Key Price and Performance Indicators
To summarise, Indostar Capital Finance’s stock has reached Rs.217.5, its lowest level in 52 weeks, after a series of declines over four consecutive days. The stock trades below all major moving averages, signalling continued pressure. Its one-year return of -13.64% contrasts with the Sensex’s positive 5.59% return, underscoring relative underperformance. Financial metrics reveal limited long-term growth and profitability, with recent quarterly results showing some improvement in PAT and leverage ratios.
While the broader market maintains a generally positive stance, Indostar Capital Finance’s share price reflects ongoing challenges in valuation and earnings performance.
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