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This Article is From Apr 07, 2021

Indostar Capital Finance - Diversified, Retail-Focused Business: Anand Rathi

Indostar Capital Finance - Diversified, Retail-Focused Business: Anand Rathi
A customer holds Indian rupee notes at a store in the Dadar wholesale flower market in Mumbai, India (Photographer Dhiraj Singh/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

With a retail-focused strategy concentrating on higher-yield (used) vehicle financing. Indostar Capital Finance Ltd.'s diversified funding profile and strong asset and liability management framework gives it a strong profile.

Recently co-promoter Brookfield invested Rs 12.25 billion for ~57% equity shares, testimony to the company's robust business model and which can act as a catalyst to raise further liquidity from banks.

Key risks -

  1. Retail segment not working as expected -the company used to be heavily into wholesale lending and has now shifted to retail businesses.
  2. Increase in non-performing assets - any unexpected increase in NPAs especially in the CV segment could lead to higher provisions and lower profitability.
  3. Change in government policies.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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