Indostar Capital Finance Ltd Falls to 52-Week Low of Rs.187.1

Stock Price Movement and Market Context

On 2 Feb 2026, Indostar Capital Finance Ltd’s share price touched an intraday low of Rs.187.1, representing a 4.76% drop on the day and a 4.33% decline in the latest trading session. This marks the lowest price level for the stock in the past 52 weeks, down sharply from its high of Rs.368.55. The stock has been on a consistent downward trajectory, losing value for six consecutive trading days and delivering a cumulative return of -15.47% over this period.

In comparison, the Sensex index, despite opening lower by 167.26 points, recovered to close higher by 0.21% at 80,889.46 points. The broader market environment shows some resilience, with mega-cap stocks leading gains. However, Indostar Capital Finance Ltd has underperformed its sector, the Non Banking Financial Company (NBFC) segment, by 2.47% 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 a persistent bearish trend. This technical positioning underscores the challenges the stock faces in regaining momentum.

Financial Performance and Valuation Metrics

Indostar Capital Finance Ltd’s financial indicators reflect subdued long-term growth and profitability. The company’s average Return on Equity (ROE) stands at a modest 1.36%, indicating limited efficiency in generating shareholder returns. The latest reported ROE is negative at -8%, which further highlights profitability pressures.

Net sales have grown at an annualised rate of just 1.52%, while operating profit has increased by 3.37% annually, both figures pointing to slow expansion. Over the past year, profits have declined sharply by 650.8%, contributing to the stock’s negative return of -26.43% over the same period. This contrasts with the Sensex’s positive 4.43% return over one year, emphasising the stock’s relative underperformance.

The stock’s valuation is characterised by a Price to Book (P/B) ratio of 0.8, which is lower than the average historical valuations of its peers. This discount reflects market concerns about the company’s growth prospects and financial health. Despite this, the stock’s market capitalisation grade remains low at 3, consistent with its overall performance challenges.

Recent Quarterly Highlights and Debt Position

On a quarterly basis, Indostar Capital Finance Ltd reported a Profit After Tax (PAT) of Rs.10.49 crores, which represents a growth of 113.4% compared to the previous four-quarter average. The Profit Before Tax excluding Other Income (PBT less OI) also reached a high of Rs.10.22 crores in the latest quarter. These figures indicate some improvement in near-term profitability metrics.

The company’s debt-equity ratio, as of the half-year period, stands at 1.43 times, which is the lowest level recorded recently. This suggests a relatively moderate leverage position within the NBFC sector, potentially reducing financial risk compared to more highly leveraged peers.

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 strong commitment to the business despite the stock’s recent price weakness. This increase in promoter holding may reflect a strategic decision to consolidate ownership amid market volatility.

Comparative Performance and Market Position

Over the last three years, Indostar Capital Finance Ltd has consistently underperformed the BSE500 index, as well as its NBFC sector peers. The stock’s returns over one year (-26.80%) and three months also lag behind broader market benchmarks. This sustained underperformance has contributed to its current Mojo Score of 23.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 11 Nov 2025.

The Sensex, while trading below its 50-day moving average, maintains a positive trend with the 50DMA above the 200DMA, supported by gains in mega-cap stocks. In contrast, Indostar Capital Finance Ltd’s share price remains below all major moving averages, underscoring its weaker technical stance.

Summary of Key Metrics

To summarise, the stock’s key metrics as of 2 Feb 2026 are:

• New 52-week low price: Rs.187.1
• One-year return: -26.43%
• Average ROE: 1.36%
• Latest ROE: -8%
• Annual net sales growth: 1.52%
• Annual operating profit growth: 3.37%
• Price to Book Value: 0.8
• Debt-Equity Ratio (Half Year): 1.43 times
• Promoter holding: 70.39%, increased by 2.8% over last quarter
• Mojo Score: 23.0 (Strong Sell)

These figures collectively illustrate the challenges faced by Indostar Capital Finance Ltd in maintaining growth and profitability, which have been reflected in its share price decline to a fresh 52-week low.

Market Environment and Sectoral Trends

While Indostar Capital Finance Ltd has experienced a notable decline, the broader NBFC sector and market indices have shown mixed performance. The NIFTY FMCG index also hit a new 52-week low today, indicating sector-specific pressures in certain segments. However, the overall market, led by mega-cap stocks, has demonstrated resilience with the Sensex closing in positive territory.

This divergence highlights the differentiated performance within the financial services sector and the broader market, with Indostar Capital Finance Ltd currently positioned towards the lower end of the performance spectrum.

Conclusion

Indostar Capital Finance Ltd’s fall to Rs.187.1, its lowest price in 52 weeks, reflects a combination of subdued financial growth, valuation pressures, and technical weakness. Despite some improvement in quarterly profitability and reduced leverage, the stock continues to face challenges relative to its sector and market benchmarks. The increase in promoter stake indicates confidence from within the company, yet the stock’s overall performance and rating remain under pressure as of early February 2026.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →