Please refer to important disclosures at the end of this report
1
Repco Home Finance (Repco), a prominent south-India based housing finance
player focused on Tier-II/III cities with average INR1mn ticket size, has a
balanced customer mix of lower risk salaried class (41% of loans) and relativel
y
higher yielding non-salaried class. The company has created a niche/moat fo
r
itself, servicing both salaried and self-employed category in Tier-II and Tier-III, as
a big bank will not be interested in giving a loan of small ticket size and govt
financial inclusion plan would hinder local lender and which eventually help
organized lender. REPCO recorded loan book CAGR of 33% over FY10-16 And
for the Q1FY17 loan book up 26% YoY to INR7960cr.Despite aggressive lending
Asset quality remained stable YoY with GNPLs at 2.22% (also 2.22% in 1QFY16);
NIM stable at 4.3% YoY. The Repco has reported RoE of 16.5% fo
r
FY15.Considering, consistent performance and government thrust on Housing
for all by 2022 will bodes well for Repco. Hence Buy.
BUY
CMP `853
Stock Info
Sector
Bloomberg Code REPCO IN
Shareholding Pattern (%)
Promoters 37.1
MF / Banks / Indian Fls 22.5
FII / NRIs / OCBs 26.5
Indian Public / Others 13.8
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
Repco Fin. 26.6 21.1 262.7
Reuters Code RHFL.BO
BSE Sensex 28,532
Nifty 8,810
Avg. Daily Volume 10,529
Face Value (
`
)10
Beta 0.7
52 Week High / Low 871/552
Finance
Market Cap (
`
cr) 5,333
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Repco Home Finance
Others | Finance
September 6, 2016
Repco Home Finance | Finance
September 6, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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