Our NEUTRAL stance on INDOSTAR remains unchanged. The capital infusion will dispel concerns about the co.'s ability to cope with asset quality and liquidity issues, but it does not preclude further deterioration in asset quality. Commentary and broader economic conditions indicate that stress may continue to manifest. Elevated provisions may follow curtailing earnings. Post the capital raise, RoAE improvement will be further deferred. INDOSTARs 3Q operating performance (PPOP, -3/-21% YoY/QoQ) was in line. High provisions (~Rs 1.1bn, ~4% ann.) wiped out profits. Asset quality deteriorated in spite of high W/Os, and remains a concern. The proposed fund infusion is a positive. Maintain NEUTRAL with a TP of Rs 300 (1.0x Dec-21E ABV). The tender offer (at Rs 290) does set a floor in the near term.