Will valuations mean revert, my expectation is, most probably it will not.
Will the stock generate returns for shareholders from here, probably yes.

I feel valuations will not mean revert because if we compare valuations of the top 4 private banks, HDFC and Kotak enjoyed high valuations as compared to ICICI and Axis. The reason for that is HDFC and Kotak were consistent in growth, profitability and NPAs, while ICICI and Axis had their own issues. Now, all 4 private banks are almost on par. Hence HDFC and Kotak will not enjoy the valuation premium going forward, so no mean reversion.

Having said that, if our economy continues to do well, all 4 banks will participate, and if they are able to grow their earnings, then the share price will follow the earnings growth.

Disc: Invested

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).

All these articles, and reports from Sadhan, MFIN, CBs and CRAs, are lagged. They are just extrapolating Q1 stress without any additional on ground data.

Also, lets not forget that Fusion is highly geographically concentrated in a few states which is of their own doing.

Keynote has given Target of 2132 for Deepak Fertilizers, +98% Upside

Keynote_initiating_coverage_on_Deepak_Fertilisers_and_Petrochemicals.pdf (1.7 MB)
“The company is well-positioned to drive growth in both revenue and profitability. Additionally, it will capitalize on increased capacity utilization, supported by favorable macroeconomic conditions. Strong demand, bolstered by the absence of import dumping and a growing GDP, coupled with positive monsoon forecasts, will further enhance the company’s prospects.

The global ammonia and nitric acid market is currently facing significant changes due to several key factors. Strict environmental regulations and high compliance costs are leading to the closure of ammonia production facilities across Europe, reducing regional supply. At the same time, natural gas prices are rising because of higher domestic demand and LNG exports, which is driving up production costs for ammonia producers, especially in Europe.
As a result of these developments, global prices for both ammonia and nitric acid are expected to rise, benefiting producers in regions with lower raw material costs, such as India. However, industries that rely on these chemicals, such as fertilizer and explosives manufacturers, may need help with these increased costs.
disc- invested, not buy/sell reco

MFIs may grapple with muted growth, higher stress in FY25 – The Hindu BusinessLine,

Also, check the care rating report.