Repco Home Finance - Q4 FY21 Result Report - YES Securities

(Rating: BUY, TP: Rs 475, Upside: 27.0%)

Asset quality resilience and growth pick-up can re-rate the stock further - Retain BUY

- While growth has been a sticky issue for Repco (higher competition + low operational rigor), the asset quality resilience has been a stand-out feature. The latter raises comfort on customer segment, underwriting and collections.

- This along with consistent strong RoA/RoE delivery can raise valuation further (stock trading at 1x FY23 P/ABV).

- Additional trigger for stock performance/valuation re-rating would be a potential stake sale by Repco Bank for raising capital or after receiving a universal banking license approval from RBI.

- Retain BUY and raise 12m PT to Rs475.

Shares of REPCO HOME FINANCE LTD. was last trading in BSE at Rs.356.55 as compared to the previous close of Rs. 365.3. The total number of shares traded during the day was 26896 in over 1858 trades.

The stock hit an intraday high of Rs. 372.65 and intraday low of 350. The net turnover during the day was Rs. 9732736.

Source : Equity Bulls

Keywords