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INDOSTAR Share Price Target
Indostar Capital Finance Ltd.
Sector: Finance
Sector: Finance
INDOSTAR Share Price *
176.4 -3.55 (-1.97%)
* (quote may be delayed)
INDOSTAR Share Price Forecast - Consensus
| No. of reports in last year | 4 |
| No. of analysts | 3 |
| Average Consensus Forecast | 548.00 |
| Consensus Potential | 67.08% |
INDOSTAR Share Price Target - Broker Reports - 2019
Motilal Oswal
23-May-19
Price @ Call: 351.9
Target: 525
BUY
INDOSTAR is at the beginning of its ‘second innings’ – the ongoing business diversification into retail lending will help drive growth, improve credit rating and enable it to enjoy higher leverage. While RoE is likely to be subdued at 10-11% in the near term, it is likely to improve to 13- 15% over the medium term. With capital adequacy ratio of 20%+, it is well capitalized and will not require any further dilution over the medium term. The key risk to our thesis lies in continued liquidity tightness leading to lower- than-expected growth in the vehicle finance segment. We maintain our estimates. Buy with TP of INR525 (1.2x FY21 BVPS).
Motilal Oswal
17-Apr-19
Price @ Call: 418.16
Target: 525
BUY
However, the near-term RoE is likely to be modest at 9-11% due to (a) heavy investment in branch expansion (150 branches opened in the past one year) and (b) low leverage (Tier-I capital of 30%). Over the medium term, its RoE is expected to improve to 13-15% as INDOSTAR’s branches mature, and its long-term sustainable RoE is likely to be 16%. We believe that at the stock’s current valuations of 1.1x FY20E BV and 10x FY20E EPS, the risk-reward for INDOSTAR is favorable. We, thus, initiate coverage on the stock with a Buy rating and a TP of INR525 (1.2x FY21E BV).
HDFC Securities
26-Mar-19
Price @ Call: 349
Target: 549
BUY
Opportunistic and tactile lending by an astute mgt translated into (1) superior yields (~15% over FY13- 18), (2) astounding asset quality (G/NNPAs: 90/60bps), (3) efficient operations and (4) thus lofty RoAAs (4.7%, FY 13-18). Granular growth will de-risk the overall book, hereon. Further, the ability to increase leverage will drive RoAEs. At a little over ~1x trailing ABV, valuations are attractive even if we assume significant slippages (unlikely). Initiate coverage with a BUY (TP of Rs 549, 1.5xMar-21E ABV of Rs 366).
LKP Securities Limited
2-Jan-19
Price @ Call: 351.36
Target: 593
BUY
INDOSTAR Share Price Target - Broker Reports - 2018
LKP Securities Limited
17-Sep-18
Price @ Call: 434.5
Target: 593
BUY
Centrum
30-Aug-18
Price @ Call: 437
Target: 600
BUY
JM Financial
28-Jun-18
Price @ Call: 501.32
Target: 650
BUY