Repco Home Finance Ltd. share price target

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 150 branches and 35 satellite centers of which ~87% are located in the southern market. Repco has shown robust growth in its loan book clocking 29% CAGR (FY12-FY16) and stood at INR ~76bn at the end 4QFY16. RHFL average loan per unit is...

Repco's 4QFY16 PAT grew 21.3% YoY to INR422m (6% miss); While the operating profits was 7% above est. (due to lower opex); higher provisions of INR140m v/s est. of INR60m (led by higher write-offs and increase in provisions...

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 has113 branches and 38 satellite centers of which ~87% are located in the Southern market. Repco has grown from strength to strength with its loan book clocking 30.7%YoY and stood at INR 71.5bn at the end 3QFY16. RHFL average loan ticket size is at INR 1.30mn, with live accounts at 64,303. RHFL maintained a healthy NIM of 4.4%, along...

Outlook and valuation: Repco is a play on the structural growth in the mortgage market withitsnichefocusontheunderservedselfemployedsegmentinsmallertownsandcities in India. The immense opportunity in lesscompetitive rural housing and the company's...

book CAGR of +27% (primarily driven by volume growth) over FY1518, enabled by increasing geographical presence and strong demand in selfconstruction. Traction in recentlyopenedbranchesandadditionofnewbranchwilladdtothevolumegrowth.Self...

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 has108 branches and 38 satellite centers of which ~87% are located in the Southern market. Repco has grown from strength to strength with its loan book clocking 30% CAGR (FY11-FY15) and stood at INR ~68.4bn at the end...

Repco reported another quarter of strong operating performance as the earnings grew by 20% YoY (29.2% QoQ) to Rs 391 mn led by strong growth in non- interest income. Asset quality deteriorated on annual basis though it improved QoQ due to seasonality.

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 has108 branches and 36 satellite centers of which ~90% are located in the Southern market. Repco has grown from strength to strength with its loan book clocking 30% CAGR (FY11-FY15) and stood at INR ~63.4bn at the end 1QFY16. RHFL average loan ticket size is at INR 1.20mn, with live accounts at 59,428. RHFL maintained a healthy NIM of...

Strong business and non- interest growth followed by asset quality pressure due to seasonality were the key highlights of the Q1FY16 results for Repco. Earnings grew by 21.9% YoY (-13.2% QoQ) to Rs 302 mn led by strong growth in NII and non- interest income though higher provision expenses impacted the overall earnings growth.

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 has106 branches and 36 satellite centers of which ~91% are located in the Southern market. Repco has grown from strength to strength with its loan book clocking 30% CAGR (FY11-FY15) and stood at INR ~60bn at the end 4QFY15. RHFL average loan ticket size is at INR 1.20mn, with live accounts at 60000+. RHFL maintained a healthy NIM of...