Stock Price Movement and Market Context
On 30 Jan 2026, Indostar Capital Finance Ltd’s share price touched an intraday low of Rs.202.3, representing a 3.99% decline on the day and a 1.21% drop compared to the previous close. This new low comes after four consecutive days of losses, during which the stock has fallen by 9.32%. The stock’s underperformance is notable against its sector, lagging by 3.46% today.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened lower at 81,947.31, down 0.75%, and was trading at 82,080.06 (-0.59%) at the time of reporting. The Sensex remains 4.97% below its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a mixed but relatively more stable market environment.
Long-Term Performance and Valuation Metrics
Over the past year, Indostar Capital Finance Ltd has delivered a negative return of 16.41%, significantly underperforming the Sensex, which posted a positive 6.91% return over the same period. The stock’s 52-week high was Rs.368.55, highlighting the extent of the recent decline.
Fundamental metrics reveal challenges in the company’s long-term growth trajectory. The average Return on Equity (ROE) stands at a modest 1.36%, reflecting limited profitability relative to shareholder equity. Net sales have grown at an annual rate of just 1.52%, while operating profit has increased by 3.37% annually, both figures indicating subdued expansion.
Valuation metrics further underscore the stock’s current standing. The company’s ROE has recently been negative at -8, and it trades at a Price to Book Value ratio of 0.8, suggesting the market values the company below its book value. This valuation is discounted relative to peers’ historical averages, reflecting investor caution.
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Profitability and Debt Profile
Despite the overall subdued performance, some recent quarterly financial indicators show improvement. The Profit After Tax (PAT) for the latest quarter stood at Rs.10.49 crore, reflecting a growth of 113.4% compared to the previous four-quarter average. Similarly, Profit Before Tax excluding other income (PBT less OI) reached Rs.10.22 crore, the highest in recent quarters.
The company’s debt-equity ratio for the half-year period is at a relatively low 1.43 times, indicating a moderate leverage position compared to typical NBFC standards. This suggests a cautious approach to debt management amid challenging market conditions.
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 recent share price declines.
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Comparative Performance and Market Position
Indostar Capital Finance Ltd’s performance over the medium to long term has been below par relative to broader market indices and sector benchmarks. The stock has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in generating shareholder value.
The company’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell as of 11 Nov 2025, an upgrade from the previous Sell rating. The Market Cap Grade is 3, indicating a smaller market capitalisation relative to larger peers in the NBFC sector.
These metrics collectively highlight the stock’s current standing as a lower-ranked investment within its sector, influenced by weak long-term fundamentals and valuation concerns.
Summary of Key Financial and Market Indicators
To summarise, Indostar Capital Finance Ltd’s stock has reached a 52-week low of Rs.202.3 after a sustained period of decline. The stock’s recent performance has been marked by a 9.32% loss over four days and a 16.41% negative return over the past year. The company’s financial indicators reveal modest growth in sales and operating profit, a low average ROE of 1.36%, and a negative recent ROE of -8. Valuation metrics show the stock trading below book value, reflecting market caution.
On the positive side, recent quarterly profit growth and a manageable debt-equity ratio provide some stability. Promoter stake increases also indicate confidence in the company’s prospects. However, the stock continues to trade below all major moving averages and has underperformed key indices and sector peers over multiple time frames.
These factors collectively explain the stock’s decline to its current 52-week low and its classification as a Strong Sell by MarketsMOJO, underscoring the challenges faced by Indostar Capital Finance Ltd in the current market environment.
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