IndoStar Capital Finance Limited Valuation
INDOSTAR · Financial Services · Current price ₹197
Is IndoStar Capital Finance Limited undervalued?
We estimate the fair value of IndoStar Capital Finance Limited at ₹674 per share, against a market price of ₹244. That puts the share price about +175.8% below our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Discounted cash flow (2-stage) (₹674). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for IndoStar Capital Finance Limited spans ₹606 to ₹741. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
IndoStar Capital Finance Limited trades at a P/E of 20.3x and a P/B of 1.1x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for IndoStar Capital Finance Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹606 – ₹741
Why this method for this business
DCF is the most appropriate model for NBFCs like Indostar Capital Finance Ltd, as it captures the intrinsic value of a financial institution through its cash flow generation and capital structure.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFF path
- ev_sales: Not applicable for NBFCs, as EV/Sales is more suited for asset-light businesses with stable revenue streams.
What was missing
- Lack of forward-looking EBITDA estimates
- Limited data on credit risk exposure
- Insufficient information on regulatory changes
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 1,064 ₹cr
- Net debt
- 5,476.8 ₹cr
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
- Discount rate (r)
- 11.64%
- Beta
- 1.45
WACC (computed)
bottom-up industry
- Stage-1 start growth
- 4.82%
- Fade shape
- linear
- Terminal growth (g)
- 4.82%
- Stage-1 years
- 8 y
pat_cagr_5y
lifecycle Turnaround
macro terminal × quality premium
lifecycle Turnaround horizon
- Lifecycle stage
- Turnaround
- Quality premium
- 0.964×
forecast engine (L20)
moat None + capital allocation
- Path
- FCFF
- Terminal-value fraction
- 0.604
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for IndoStar Capital Finance Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 15 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyUnderstand the ratios
More on IndoStar Capital Finance Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.