Mr. Jaikishan Parmar – Sr. Equity Research Analyst, Angel Broking Ltd
“Indostar Capital reported a moderate set of Numbers for Q2FY21. Consolidated profit declined by 36% /33% YoY/QoQ, largely owing to weak NII (fell16% YoY) and higher operating expense(increased 7%YoY), however, lower provision cost (fell 55% YoY) supported PAT. AUM continue to declined (15% /7% YoY/Q0Q). AUM declined as well as define a strategy to reduce corporate lending MIX. In Q2FY2195% of the disbursement was towards retail lending. GNPA improved, collection efficiency reached 99.77% in October, which is higher compared to other NBFC. Till now Indostar has received 1.39% of the book for restructuring. Indostar currently trading at 0.95x of Q2FY21 Book value, which we believe is reasonable considering a healthy Capital adequacy ratio (35%) and focused management.”
Shares of Indostar Capital Finance Ltd was last trading in BSE at Rs.296.75 as compared to the previous close of Rs. 290.9. The total number of shares traded during the day was 512 in over 101 trades.
The stock hit an intraday high of Rs. 296.75 and intraday low of 292.7. The net turnover during the day was Rs. 151095.
