Neutral Repco Home Finance; target of Rs 450: Motilal Oswal

Motilal Oswal recommended Neutral rating on Repco Home Finance with a target price of Rs 450 in its research report dated February 07, 2026.

Broker Research

February 11, 2026 / 22:10 IST

Neutral

Motilal Oswal's research report on Repco Home Finance

Repco Home Finance’s (Repco) 3QFY26 PAT grew 2% YoY to INR1.1b (in line). NII grew ~10% YoY to ~INR2b (in line). Other income declined ~40% YoY to INR118m (vs est. of INR150m).Opex rose ~40% YoY to INR748m (~27% higher than est.). This included a one-time impact of provisions of ~INR48m made on account of the new labor codes.PPoP declined ~8% YoY to INR1.3b (~10% miss). Provision write-backs stood at ~INR156m, translating into annualized credit costs of -41bp (PY: 1bp and PQ: -4bp).

Outlook

While the risk-reward remains favorable, we would continue to monitor Repco’s ability to deliver sustained loan growth and execution consistency. Reiterate our Neutral rating on the stock with a revised TP of INR450 (based on 0.6x Dec’27E BVPS).

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