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Buy Repco Home Finance; target of Rs 500: Motilal Oswal

June 12
15:24 2019

Motilal Oswal’s research report on Repco Home Finance

4QFY19 PAT grew 58% YoY to INR515m (10% miss), driven by modest loan growth, spread compression and lower credit costs (-INR24m v/s INR400m YoY). The miss v/s our estimates was driven primarily by lower NII, which the company attributed to fee income reversal of INR160m, driven by higher ECL provisions (150bp v/s 80bp earlier).

Outlook

Maintain Buy with TP of INR500 (1.5x FY21E BVPS). We have not currently factored in the value of investment in the associate in our TP.

For all recommendations report, click here

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