HDFC Securities' research report on Indostar Capital Finance
INDOSTAR’s earnings were below estimates on account of worse-thanexpected operating performance. The company, like many of its peers, reported a sharp improvement in retail collection efficiency (~100% in October; incl. overdues). De-growth in the corporate portfolio will continue to weigh down on overall growth in the near term, and this portfolio could continue to pose asset quality risks.
Outlook
This drives our REDUCE rating (target price of Rs 303). In the near term, we will watch for steps towards compliance with promoter shareholding requirements and possible inorganic growth.
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