Stock Price Movement and Market Context
On 1 Feb 2026, Indostar Capital Finance Ltd recorded an intraday low of Rs.192, representing a 7.09% drop within the trading session. The stock has been on a consecutive five-day losing streak, cumulatively falling by 14.15% over this period. This decline notably outpaced the Finance/NBFC sector’s fall of 2.82% and underperformed the sector by 6.18% on the day.
In comparison, the Sensex opened 119.19 points higher but reversed sharply to close down by 1.27%, trading at 81,221.65 points. The benchmark index remains below its 50-day moving average, though the 50DMA continues to trade above the 200DMA, indicating mixed technical signals in the broader market.
Technical Indicators Highlight Bearish Momentum
Indostar Capital Finance is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish momentum and suggests limited near-term price support. The stock’s 52-week high stands at Rs.368.55, highlighting the extent of the recent decline.
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Long-Term Performance and Valuation Metrics
Over the past year, Indostar Capital Finance Ltd has delivered a negative return of 21.10%, significantly underperforming the Sensex, which posted a positive 6.14% return during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.
The company’s valuation metrics reflect a cautious outlook. It trades at a Price to Book Value of 0.8, which is below the average historical valuations of its peers, suggesting a discount in the market’s assessment of its worth. However, this valuation is accompanied by weak fundamental indicators.
Fundamental Analysis: Earnings and Growth Trends
Indostar Capital Finance’s long-term fundamental strength remains subdued. The average Return on Equity (ROE) stands at a modest 1.36%, with recent figures indicating a negative ROE of -8. Net sales have grown at an annual rate of only 1.52%, while operating profit has increased at a rate of 3.37%, both reflecting limited growth momentum.
Profitability has also deteriorated sharply, with profits falling by 650.8% over the past year. Despite this, the company reported a quarterly Profit After Tax (PAT) of Rs.10.49 crore, which represents a 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 crore in the latest quarter, marking its highest level.
The company’s debt-equity ratio at half-year stands at a relatively low 1.43 times, which is the lowest in recent periods, indicating a moderate leverage position.
Shareholding and Promoter Activity
Promoter confidence appears to be strengthening, with promoters increasing their stake by 2.8% over the previous quarter. Currently, promoters hold 70.39% of the company’s equity, signalling a commitment to the business despite the challenging market conditions.
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Sector and Market Comparison
The Finance/NBFC sector has experienced a decline of 2.82% recently, but Indostar Capital Finance’s sharper fall of nearly 5% on the day and its extended downtrend highlight company-specific pressures. The stock’s Mojo Score of 23.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 11 Nov 2025, reflect the market’s cautious stance on its prospects.
Its Market Cap Grade is rated at 3, indicating a relatively modest market capitalisation compared to larger peers in the sector.
Summary of Key Metrics
To summarise, Indostar Capital Finance Ltd’s stock has reached a new 52-week low of Rs.192, reflecting a sustained decline over recent months. The stock’s underperformance relative to the Sensex and its sector, combined with subdued growth rates, weak return on equity, and a significant drop in profits, underpin the current valuation pressures. While promoter stake increases suggest confidence from within, the broader market continues to price in challenges for the company’s financial performance.
Investors and market participants will continue to monitor the stock’s price action and fundamental developments closely as it navigates this period of subdued performance.
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