Weekly Tactical Pick: Indostar Capital Finance

We are recommending Indostar Capital Finance (CMP: Rs 350, market capitalisation: Rs 3,200 crore), the asset financing non-banking financial company (NBFC), as a tactical pick. Primarily, a wholesale financier, it forayed into SME, vehicle and housing finance to de-risk its loan book. The result of its diversification strategy is clearly evident in the changing mix of its loan book in favour of retail assets. To grow its non-corporate book, Indostar acquired the commercial vehicle finance business of IIFL Finance last month. The acquisition of CV finance assets of Rs 3,949…

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New model launches marginally boost automobile sales in February

New model launches helped automobile sales in February rise a little over the year-ago period, according to monthly data released by companies on March 1. Cumulative sales of India’s top passenger vehicle makers — Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Honda Cars, and Toyota Kirloskar — increased to 206,418 units in February over 200,322 units in the same month last year. This is an increase of 3 per cent. Hyundai Motor had not released sales figures till the time of going to press. Weak sentiments would have hit sales…

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