Repco Home Finance Result - Angel Broking

Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd

"Repco Home finance reported subdue numbers for Q1FY21. AUM grew at 5.6% YoY an 1.3% QoQ which is below compared to past growth. NII grew marginally YoY and NIM declined 20bp YoY and 40bps QoQ to 4.3%. NIM compression owing to yield on asset decline faster than the cost of fun. PBT declined 11% YoY led by elevated provision cost and PAT grew by 3% due to lower tax expenses. On the asset quality front, Gross Stage 3 declined by 30bps sequentially to 4.03% and the coverage ratio improved by 500bps to 41%, which provides comfort as 51.7% of the AUM mix is Non-salaried. Repco Home Finance Moratorium number is high compared to other housing finance companies. Repco home finance trading at 0.65x of TTM Book Value which is lower compared to historical valuation. Though Q1FY21, numbers are subdued, however, considering inexpensive valuation positive price momentum to continue. An investor will closely watch slippage and restructuring from the moratorium book in coming quarter, which will decide next trend of stock movement."

Shares of REPCO HOME FINANCE LTD. was last trading in BSE at Rs.181.9 as compared to the previous close of Rs. 173.25. The total number of shares traded during the day was 78680 in over 230 trades.

The stock hit an intraday high of Rs. 181.9 and intraday low of 181.9. The net turnover during the day was Rs. 14311892.

Source : Equity Bulls

Keywords