Moneycontrol PRO
Upcoming Event:Join us for New HorAIzon from Oct 6-7, 2pm and be a part of exciting conversations on tech & innovation

Buy Repco Home Finance; target of Rs 432: Cholamandalam securities

Cholamandalam securities is bullish on Repco Home Finance has recommended buy rating on the stock with a target price of Rs 432 in its research report dated July 01, 2021.

July 01, 2021 / 03:03 PM IST
  • bselive
  • nselive
Todays L/H

Cholamandalam securities' research report on Repco Home Finance

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 153 branches and 24 satellite centers of which ~87% are located in the southern market. Repco has shown robust growth in its loan book clocking 21% CAGR (FY13-FY19) and stood at ₹~121.2bn at the end 4QFY21. RHFL average loan per unit is at ₹1.5mn, with live accounts at 101,153. RHFL maintained a healthy NIM of 4.8%, along with GNPA at 3.7% for 4QFY21.


A robust business model with attractive return ratios makes RHFL favored player in the housing finance space. Steady asset quality, sound loan spread, comfortable liquidity position, declining cost of funds and the management’s cautious lending approach are all factors we believe will lend support to earnings in near term. We arrive at a target price of ₹ 432, assigning a P/ABV of 1X FY23E, maintaining our rating as BUY on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 1, 2021 03:03 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark