Below is the views on Housing Finance Company Ltd By Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking)
“REPCO Home Finance is a midsized Housing Finance Company (HFC), with focus on the underserved self-employed segment. While the current operations of the company are predominately concentrated in Southern market (90%), the management intends to gradually venture into other geographies over the next 5 years.
The target segment of REPCO is highly underserved and this offers a growth potential for many years going ahead. Unlevered balance sheet and stable NIM coupled with controlled credit cost should result in 26% earnings CAGR over FY2016-19E. At the CMP the stock is trading at 2.7x it FY2019 ABV. We have valued the stock at 3.5x its FY2019E ABV and Recommend BUY with a Target Price of INR 825 over the next 12 months.”
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