Repco Home Finance Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for REPCOHOME, BSE:535322 Repco Home Finance Ltd.

Repco Home Finance Ltd.

24 May 2018

356.55

0.88%

Repco Home Finance (4QFY18): Brighter days ahead. Maintain BUY

Buy: Repco Home Finance Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 683 (2.5x Mar-20 ABV of Rs 273). REPCOs 4Q numbers beat estimates given the claw back in asset quality (GNPAs dipped ~20% QoQ). Though overall growth (+10% YoY) was sluggish, it was largely owing to (deliberately) tepid growth in LAP (up merely 2%). Credit costs dipped (60bps ann. vs. 83bps in 3Q) as REPCO wrote back provisions of Rs 28mn. NIMs too improved 20bps QoQ to 4.8% as yields remained flat and COF dipped 30bps.

Repco Home Finance Ltd. is trading below all available SMAs

Repco Home Finance Ltd.

24 May 2018

356.55

0.88%

Co re TN market tepid; improvement in asset quality

Buy: Repco Home Finance Ltd.

Target

Motilal Oswal

REPCOs 4QFY18 PAT increased 10% YoY to INR566m (in-line). Modest loan growth, a tapering cost-to-income ratio and a sequential decrease in the GNPL ratio were the key highlights of the quarter. Sanctions increased 19% QoQ to INR9.2b, while disbursements rose 29% QoQ to INR8.5b. This was modestly below managements guidance of sanctions of 24 May 2018 INR10b in 4QFY18. Management indicated that the core market of Tamil Nadu (TN) still faces lingering effects of the sand mining ban, as TN loan book growth was a tepid 6% YoY. Consequently, loan growth was at 10.3% YoY (v/s 9.6% in 3QFY18), resulting in a loan book of INR98.6b. LAP book has remained steady at INR17-18b for the past seven quarters. Calculated spreads increased 25bp QoQ to 3.4%, driven by stable yields and a 25bp reduction in CoF. We believe cost of funds has bottomed out and this should have an impact on spreads, going forward.

Repco Home Finance L.. has an average target of 456.67 from 3 brokers.

Repco Home Finance Ltd.

06 Mar 2018

356.55

0.88%

Repco Home

Buy: Repco Home Finance Ltd.

Recommendation Target

Centrum Broking

Loan growth set to improve: After 4 consecutive quarters of decline in sanctions and disbursements post-demonetisation, the same grew at a robust pace of 70.3% YoY and 30.9%, respectively (although on a lower base). Loan book grew 9.6% to 9,490 crore as on 31 Dec'17 with 81.1% contribution from Individual Home Loans. This is expected to improve further in Q4 with disbursements aimed at ~ 1,000 crore. Also, the management has guided a growth of ~20% in FY19E. Overall growth in Tamil Nadu and Kerala is low currently, however the same is expected to improve going ahead. Further, RHFL plans to expand more in other...

Repco Home Finance Ltd. is trading below all available SMAs

Repco Home Finance Ltd.

20 Feb 2018

356.55

0.88%

Result Update:Repco Home Fin

Buy: Repco Home Finance Ltd.

Axis Direct

Q3 was weak with PAT at Rs 485 mn (up 4.6% YoY) below our estimate (of Rs 587 mn). This was due to muted advances growth, margin compression and higher provisions on deterioration in asset quality.

Repco Home Finance Ltd. is trading below all available SMAs

Repco Home Finance Ltd.

16 Feb 2018

356.55

0.88%

Repco Home Finance (3QFY18): Asset quality deteriorates. Maintain BUY

Buy: Repco Home Finance Ltd.

Target

HDFC Securities

We maintain BUY with a TP of Rs 750 (2.8x Dec-19E ABV of Rs 269). Repcos 3QFY18 net earnings were below expectation due to higher credit cost as GNPA increased 50bps QoQ to 3.7%. As expected, Loan book growth was muted at 1.8/9.6% QoQ/YoY as the home states land regularisation rules along with sand mining problems impacted construction. NIM continued to be strong at 4.6%.

Repco Home Finance Ltd. is trading below all available SMAs

Repco Home Finance Ltd.

15 Feb 2018

356.55

0.88%

Repco Home

Buy: Repco Home Finance Ltd.

Target

JM Financial

Repco Home Finance (Repco) reported 3QFY18 earnings of INR 485mn, up 5% YoY. Loan growth moderated to 9.6% on account of i) Sand Mining ban in TN after Madras High Court's order in Nov'17; ii) sluggish LAP growth (flat YoY) with company focusing on lower ticket LAP iii) higher repayments due to increase in competition and iv) slower growth outside TN in Kerala, Karnataka and AP due to state specific issues. Recently, Supreme Court has issued an interim stay on this order. Therefore, if the sand mining ban is revoked; this would help in reviving growth. Other highlights: i) There was marginal pressure on asset quality as GNPL ratio increased 10% QoQ while Net NPL increased 7% QoQ. GNPL ratio increased...

Repco Home Finance Ltd. is trading below all available SMAs

Repco Home Finance Ltd.

15 Feb 2018

356.55

0.88%

Repco Home Finance: Growth remains tepid; Sand mining ban the key issue

Buy: Repco Home Finance Ltd.

Target

Motilal Oswal

REPCO reported a tepid 4% YoY increase in 3QFY18 PAT to INR485m (15% miss). Sluggish loan growth, a sharp uptick in opex and a modest sequential increase in the GNPL ratio were key highlights of the quarter. While 3Q is a seasonally weak quarter in terms of disbursements, we had expected a sequential pick-up due to the low base in 2Q. However, while sanctions were sequentially stable at INR7.7b, disbursements declined 13% QoQ to INR6.6b. Management attributed this to the lack of demand for self-construction due to unavailability of sand in Tamil Nadu. However, recently, the Supreme Court lifted the sand mining ban in TN via an interim order. Consequently, loan growth was sequentially similar at 9.6% (v/s 10% in 2QFY18), resulting in a loan book of INR94.9b. We expect loan growth of ~10% in FY18, which should increase to ~14% in FY19 and further thereafter.

Repco Home Finance Ltd. is trading below all available SMAs

Repco Home Finance Ltd.

15 Feb 2018

356.55

0.88%

REPCO -3QFY18

Buy: Repco Home Finance Ltd.

Target

Chola Wealth Direct

Background: Repco Home Finance Limited (RHFL) is a low to medium ticket size home loan financing company predominately based in tier II / III cities of southern India. Promoted by the State-owned Repco Bank Ltd in 2000, RHFL presently has 129 branches and 31 satellite centers of which ~87% are located in the southern market. Repco has shown robust growth in its loan book clocking 26% CAGR (FY13-FY17) and stood at INR ~94bn at the end 3QFY18. RHFL average loan per unit is at INR...

Repco Home Finance Ltd. has lost -32.99% in the last 1 Year

Repco Home Finance Ltd.

29 Nov 2017

356.55

0.88%

Result Review of Repco Home Finance

Buy: Repco Home Finance Ltd.

Recommendation Target

IDBI Capital

Outlook: REPCO has to some extent recovered from the earlier shocks. It ran into troubles on account of certain uncontrollable challenges like madras high court stay order on registration of certain category of properties, significant increase in sand prices in its key markets of tamilnadu and impact of GST and demonetization on its non-salaried segment. We expect challenges mentioned to be transitionary in nature. Its capabilities in non-salaried segment, rural markets, lower ticket size makes it a unique play. As a result the company is able to clock margins higher than peers which gets reflected in relatively better return ratio....

Repco Home Finance Ltd. has lost -32.99% in the last 1 Year

Repco Home Finance Ltd.

20 Nov 2017

356.55

0.88%

Repco Home

Hold: Repco Home Finance Ltd.

Centrum Broking

Loan growth to improve going ahead: Post-demonetization, the loan sanctions and disbursements have consistently de-grown resulting in slower loan growth. In Q2FY18, while sanctions and disbursements continued to de-grow, the same increased at a robust pace, on QoQ basis, by 23.4% and 37.2%, respectively. Over the next few years, the management expects loan growth of +25% ex-Tamil Nadu (may take time to pick up pace considering slower business recovery postdemonetisation). The company plans to maintain its LAP book close to 19% of total book. Over FY17-19E, on the back of expected business recovery and government's focus on affordable housing segment, we expect loan book to...

Repco Home Finance Ltd. has lost -32.99% in the last 1 Year

Is Repco Home Finance Ltd. worth buying?

218 Votes:

Buy 85.32%

Sell 7.34%

Hold 7.34%

RESEARCH REPORTS

Buy SEE REPORTS >

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Neutral SEE REPORTS >

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