Repco Home Finanance - Q2FY21 Result - Angel Broking

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

Repco home reported a stable set of numbers for Q2FY21. Repco registered Loan growth of 1%/5% QoQ/YoY. PAT declined 19.7% YoY which is better than estimate primarily led by NII growth of 12.8% YoY and with stable operating costs and stable asset quality has led to better profitability. On the asset quality front, GNPA improved QoQ at 3.95% (-5bps QoQ). Management expects GNPA would come down in Q3FY21 and further descend at around 4% in Q4FY21. Guidance on Restructuring requirement, the worst case would be in the range of Rs.200-300cr, which is on the lower side for loan book of Rs.12,089cr.collection efficiency for Sep20 stood at 93% up from 65% it witnessed in the month of Aug20. Currently, Repco HFC is trading at 0.78x of Q2FY21 Networth, we expect a stock price to consolidate till investors get better clarity on slippages from the morat book and RoE improvement trajectory.

Shares of REPCO HOME FINANCE LTD. was last trading in BSE at Rs.246 as compared to the previous close of Rs. 246.15. The total number of shares traded during the day was 35348 in over 1561 trades.

The stock hit an intraday high of Rs. 265 and intraday low of 237. The net turnover during the day was Rs. 8717665.

Source : Equity Bulls

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