Indostar Capital Finance Adjusts Valuation Amid Competitive Market Landscape

Indostar Capital Finance has recently undergone a valuation adjustment, reflecting its current financial metrics and market position within the finance and non-banking financial company (NBFC) sector. The company's price-to-earnings (PE) ratio stands at 44.53, while its price-to-book value is at 1.00. Other key metrics include an enterprise value to EBITDA ratio of 11.86 and a return on capital employed (ROCE) of 7.62%.
In comparison to its peers, Indostar Capital's valuation appears elevated, particularly when juxtaposed with companies like Indus Inf. Trust, which has a significantly higher PE ratio of 331.95, and MAS Financial Services, which maintains a more attractive valuation with a PE of 15.03. Notably, Indostar's performance over the past year has yielded a return of 26.2%, contrasting with the Sensex's modest gain of 0.49% during the same period. However, over a longer horizon, the company's returns have lagged behind the Sensex, particularly over three and five years.

This evaluation revision highlights the competitive landscape within the finance sector, where Indostar Capital's metrics position it distinctly among its peers.