Indostar Capital recently last week sold its HFC business to EQT for 1750crs, this liquidity will help them focus on their core strengths of vehicle financing and small business loans. Also due to which the stock was in news and the trading activity picked up on back of huge volumes and the stock hit a 52 week high. The entire HFC and NBFC space is buzzing off late.
Fundamentally, during these 3 years management changes took place and legacy Corporate, vehicle finance and SME book was cleaned up. Funds were infused couple of times by the promoter Brookfield and other marquee investors took a pie of the shareholding.
Technically Indostar has been in correction mode since Aug 2021 and has formed a rounding bottom structure in form of a cup and it might create a low handle to the cup. If the pattern plays out the next technical target could be around 415 levels.
Disclosure : Invested as a trading bet.(Trades done in last week, this not a stock recommendation, anyone contemplating investing needs to do their own due diligence).
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