Indostar Capital Fin Stock Price Analysis and Quick Research Report. Is Indostar Capital Fin an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

Indostar Capital Fin stock price today is Rs 332.4. To understand the functions of the Indostar Capital Fin better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Indostar Capital Fin is Rs 71.6137 Cr and the compounded growth of profit in the past 3 years is 31.934717945875 %. The PAT margin of Indostar Capital Fin is 6.4857 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Indostar Capital Fin , the EPS declined by -61.7596 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Indostar Capital Fin has a poor ROE track record. The ROE of Indostar Capital Fin is at 2.3547 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Indostar Capital Fin is worth at the current levels at Rs 332.4. The stock is trading at a current P/E ratio of 35.3913 and the average historical P/E for the last 5 years was 8.59186.

• P/B ratio can be one of the best metrics to value such companies. Currently, Indostar Capital Fin is trading at a P/B of 1.3381 . The average historical P/B of Indostar Capital Fin for the last 5 years was 0.855466625667178. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Indostar Capital Fin is Rs 332.4. One can use valuation calculators of ticker to know if Indostar Capital Fin share price is undervalued or overvalued.