We maintain BUY with a TP of Rs 770 (3x Sept-19E ABV of Rs 257). Repcos 2QFY18 net earnings beat our estimates owing to higher yield on advances, resulting in 50bps QoQ improvement in NIM to 4.8%. Disbursements continued to soft owing to registration issues in TN, and declined 14% QoQ to Rs 7.5bn. Loan book growth was up 3.6/10% QoQ/YoY at Rs 93.2bn, as annualised repayment rates was lower at 19% compared to 21.9% in 1QFY18. Asset quality improved 50bps QoQ, with GNPAs at 3.40%. Credit cost was flat QoQ at Rs 116.1mn. PAT increased 23.7/22.3% QoQ/YoY to Rs 559mn.