Buy Repco Home at Rs 155, says Tulsian

One can buy Repco Home Finance at around Rs 155 with six months view, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I do not think that Repco Home Finance is really the stock for the retail investors for next three months or so because the response to the retail category was very subdued. It was maybe about 55-60 percent to the allocated size to that category. So definitely this stock looks more for the institutional investors. I am keeping my positive stance. If somebody can have a time horizon of about six months or so definitely they can look to buy the stock at Rs 155."
He further added, "If you take the current earning it is ruling at a PE multiple of 10. The business model has been very much is place. The only concern which we have seen is the contraction in their Net Interest Margin (NIM) over these last two to three years which used to rule at 5 percent has now fallen to about 3.6-3.7 percent, but even that seems to be quite comfortable. So I will be comfortable buying the stock at around Rs 155, maybe a minor correction of Rs 5-6, but with a view of about six months or so."