Talent (and integrity) are intact, unlike some other stressed NBFCs. But INDOSTAR faces challenges on asset quality. This can affect liquidity, too, as the Indian NBFC experience over the trailing year shows. We've cut growth assumptions and hiked LLPs, resulting in a ~30% earnings cut and 340bps jump in overall GNPAs by FY22E. Even under our stress case scenario (~14% corporate slippage over FY20-22E and 11% loan CAGR), the stock trades for a mere 0.7xFY22E ABV. Indostar represents option value today. Equity value is volatile, but unlikely to evaporate. Upsides, on the other hand, look tantalising. BUY with a TP of Rs 330, 1x Sep-21E ABV. INDOSTARs 2QFY20 operating performance was ahead of estimates, due to sharp NIM improvement. Higher provisions dented earnings. GNPAs dipped QoQ but concerns persist on asset quality. Maintain BUY.