I applied today without waiting for final subscription figures with below view:
As compared to its peers, Indostar is reasonably placed with respect to its profitability and shareholder's returns. And its asset quality is the second best only to Capital First.
At the higher end of the price band of Rs 570 to Rs 572 per share, the stock of IndoStar Capital is valued at around 2 times its book value post issue dilution. This is the lowest as compared to its peers.
Given the growth potential from vehicle finance and SME business, robust profitability and shareholder's returns coupled with benign asset quality, Indostar's valuations appear attractive.
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