JM Financial is bullish on Repco Home Finance has recommended buy rating on the stock with a target price of Rs 690 in its research report dated February 15, 2018.
JM Financial 's report on Repco Home Finance
Repco Home Finance (Repco ) reported 3 Q FY 18 earnings of IN R 485 mn, up 5 % YoY. Loan growth moderated to 9.6% on account of i) Sand Mining ban in TN after Madras High Court’s order in Nov’17 ; i i ) sluggish LAP growth (flat YoY) with company focusing on low er ticket LAP iii) higher repayments due to increase in competition and iv) slower growth outside TN in Kerala, Karnataka and AP due to state specific issues.
Outlook
We expect REPCO to deliver ROA of 2.2% and ROE of 16 % by FY20E. We value REPCO at 2.4 x Mar ’ 20 BV, implying a Mar’19 TP of INR 690For all recommendations report, click here
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