Recent Price Movement and Market Context
On 25 Nov 2025, Indostar Capital Finance's share price touched Rs.217.5, the lowest level recorded in the past year. This new low comes after the stock declined for four consecutive trading days, cumulatively registering a return of -9.73% during this period. The day’s performance showed a decline of -1.23%, underperforming its sector by -1.59%, signalling pressure relative to its NBFC peers.
Technical indicators reveal that the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a persistent bearish trend in the short to long term.
Meanwhile, the broader market displayed mixed signals. The Sensex opened 108.22 points higher but later retreated by -421.92 points, closing at 84,587.01, down -0.37%. Despite this, the Sensex remains close to its 52-week high of 85,801.70, trading above its 50-day and 200-day moving averages, indicating a generally bullish market environment. Small-cap stocks led gains with the BSE Small Cap index rising by 0.2% on the day.
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Performance Overview and Valuation Metrics
Over the last twelve months, Indostar Capital Finance has recorded a return of -13.64%, contrasting with the Sensex’s positive return of 5.59% over the same period. The stock’s 52-week high was Rs.368.55, highlighting the extent of the recent decline.
From a fundamental perspective, the company’s long-term financial indicators show subdued performance. The average Return on Equity (ROE) stands at 1.36%, reflecting limited profitability relative to shareholder equity. Net sales have exhibited a modest annual growth rate of 1.52%, while operating profit has shown a growth rate of 3.37% annually, indicating slow expansion in core business operations.
Valuation metrics reveal a Price to Book Value ratio of 0.8, suggesting the stock is trading at a discount compared to its peers’ historical valuations. However, the company’s ROE for the most recent period is reported at -8, pointing to challenges in generating returns on equity capital.
Profitability trends have also been under pressure, with profits declining by -650.8% over the past year. This significant contraction in profit levels has contributed to the stock’s subdued market performance.
Shareholding and Market Position
Despite the company’s size, domestic mutual funds hold no stake in Indostar Capital Finance. Given that mutual funds typically conduct detailed research and due diligence, their absence from the shareholding pattern may reflect a cautious stance towards the stock’s current valuation or business outlook.
In terms of relative performance, the stock has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring its challenges in keeping pace with broader market indices.
Recent Financial Highlights
Some recent quarterly financial data provide a nuanced view of the company’s current position. The Profit After Tax (PAT) for the latest quarter stands at Rs.10.49 crores, showing a growth rate of 113.4% compared to the previous four-quarter average. Additionally, the Profit Before Tax excluding other income (PBT less OI) reached Rs.10.22 crores, the highest recorded in recent quarters.
The company’s debt-equity ratio for the half-year period is reported at 1.43 times, which is relatively low within the NBFC sector, indicating a moderate level of leverage.
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Sectoral and Industry Considerations
Indostar Capital Finance operates within the Non Banking Financial Company (NBFC) sector, which has experienced varied performance in recent months. While some NBFCs have shown resilience, others have faced headwinds related to credit growth and asset quality. The stock’s current valuation and price movement reflect these sectoral dynamics as well as company-specific factors.
Given the stock’s position below all major moving averages and its recent price trajectory, the market appears to be pricing in ongoing challenges. However, the recent quarterly profit growth and manageable debt levels provide some context to the company’s financial health amid the prevailing market conditions.
Summary
Indostar Capital Finance’s fall to a 52-week low of Rs.217.5 marks a notable point in its recent market journey. The stock’s performance over the past year and recent sessions highlights a combination of subdued growth, valuation pressures, and relative underperformance compared to broader indices and sector peers. While some quarterly financial metrics show improvement, the overall market assessment remains cautious, as reflected in the stock’s technical and fundamental indicators.
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