Sharekhan has given Buy recommendation for Repco Home Finance with a target price of Rs. 330 in its research report issued on Feb 11, 2021
Sharekhan’s research report on Repco Home Finance
Repco Home Finance Limited (Repco) posted strong performance in Q3FY2021; healthy operational numbers, margin improvement, better collections, and growth in commentary were key positives. Healthy business traction with Q3FY2021 disbursement up 18% q-o-q; Encouraging asset-quality performance with reported GS3/proforma GS3 at 3.3%/4.3% (manageable gap), with 97% collection efficiency (up from 93% September levels) and low restructuring. Available at 0.9x/0.8x its FY2022E/FY2023E, which we believe is reasonable; a strong business model, stable ratings, and conservative underwriting with attractive return ratios make RHFL attractive.
Management commentary is positive. We maintain Buy with unchanged PT of Rs. 330.