Repco Home Finance Q2 Results Review - NIM Expansion Positive; Strong Focus On Asset Quality: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Repco Home Finance Ltd. reported an improvement in earnings, which came in higher than our estimate, driven by net interest margin expansion and lower provisions. Profit after tax grew by 38% YoY (10% QoQ) to Rs 981 million. The management reiterated its guidance of achieving 12% assets under management growth. We expect 10.6% due to a weak H1, higher repayment trajectory and rising competition in the segment.NIM expanded by 30 basis points QoQ (70 bps YoY) to 5.4% and we expect FY24 NIM of ~4.7%. Opex continues to be elevated as Repco Home Finance invests in tech transformation. Dedicated focus on asset quality improvement over the past eight quarters has led to gross/net non-performing asset at 4.9%/2.2%. With healthy stage three expected credit loss provisions of ~57.4%, there is a possibility of write-backs as the asset quality improves. We revise our estimates to account for a lower NIM and elevated opex. Maintain 'Accumulate' on Repco Home Finance with a target price of Rs 420, valuing it at 0.8 times September 2025E adjusted book value per share..Click on the attachment to read the full report:.Aptus Value Housing Finance Q2 Results Review - Inline Operating Performance; Guidance Maintained: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Repco Home Finance Q2 Results Review - NIM Expansion Positive; Strong Focus On Asset Quality: Nirmal Bang

Assets under management growth mild; run-rate likely to fall short in FY24

Choose a plan