Buy Repco Home Finance: target of Rs 330: Sharekhan

Sharekhan is bullish on Repco Home Finance has recommended buy rating on the stock with a target price of Rs 330 in its research report dated January 11, 2021.

January 14, 2021 / 09:03 PM IST
 
 
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Sharekhan's research report on Repco Home Finance


Repco is an attractively valued HFC with a niche loan book (salaried & professional class borrowers), stable asset quality, strong ratings and good return ratios. With disbursements gaining pace since September, company return to growth in FY2021E itself; collection efficiency at 93% in September. Stock has corrected ~72% from highs; multiples have fallen to 0.9x forward ABVPS from 2.5x. Valuation reasonable at 0.9x/0.8x FY22E / FY23E, considering healthy ROE of 14+%; ROA of over 2.3%; easy liquidity and declining cost of funds that will shield NIMs from medium-term risks.


Outlook


We initiate coverage on Repco Home Finance Ltd (RHFL) with a Buy and PT of Rs. 330.


For all recommendations report, click here


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Broker Research
first published: Jan 11, 2021 06:14 pm

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