Repco Home Finance share price: Buy Repco Home Finance, target price Rs 430: Motilal Oswal


Motilal Oswal has purchase name on with a target price of Rs 430. The present market price of Repco Home Finance Ltd. is Rs 326.85.

Repco Home Finance Ltd., included within the yr 2000, is a Small Cap firm (having a market cap of Rs 1912.19 Crore) working in NBFC sector.

For the quarter ended 31-12-2020, the corporate reported a Consolidated Total Income of Rs 359.75 Crore, up 2.72 % from final quarter Total Income of Rs 350.22 Crore and up 5.49 % from final yr similar quarter Total Income of Rs 341.02 Crore. Company reported web revenue after tax of Rs 79.60 Crore in newest quarter.


Investment Rationale
Since the IL&FS disaster, REPCO decreased its dependence on capital market borrowings to nil at current from 20% earlier. It proactively elevated its lowcost NHB borrowings on the similar time, thus sustaining margin. The administration has laid nice emphasis on controlling asset high quality. While it’s nonetheless early days, it appears that evidently the impression of the disaster on asset high quality is more likely to be minimal. Credit prices ought to normalize to 30-40bp in FY22E. However, development nonetheless stays elusive. While the brokerage forecasts a pick-up, it expects the corporate to ship solely 8% mortgage ebook development over FY21-23E. It will increase FY22E/FY23E EPS estimate by 2-4% to consider greater margin.

Promoter/FII Holdings
Promoters held 37.1 per cent stake within the firm as of Dec 31, 2020, whereas FIIs held 19.8 per cent, DIIs 20.1 per cent and public & others 23 per cent.

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