Accumulate Repco Home Finance with a target at Rs 735: Centrum Broking
Going ahead, the business is expected to maintain its growth momentum for next few years on the back of healthy demand and increasing contribution from self-employed class, said the brokerage note.
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| Updated: Centrum Broking maintains an accumulate rating on Repco Home Finance with a 12-month target price of Rs 735, after the company reported good set of numbers, in-line with estimates.
The healthy growth of 27.9 per cent in the loan book resulted in 28.5 per cent YoY growth in NII (net interest income). The net profit grew by 21.3 per cent along with an improvement in the asset quality (gross NPA down 98bps QoQ to 1.31%).
Going ahead, the business is expected to maintain its growth momentum for next few years on the back of healthy demand and increasing contribution from self-employed class, said the brokerage note.
"We expect loan book to witness a 29% CAGR over FY16-18E to ?12,808 crore. This, along with improvement in asset quality is expected to result in healthy return ratios," added the note.
The healthy growth of 27.9 per cent in the loan book resulted in 28.5 per cent YoY growth in NII (net interest income). The net profit grew by 21.3 per cent along with an improvement in the asset quality (gross NPA down 98bps QoQ to 1.31%).
Going ahead, the business is expected to maintain its growth momentum for next few years on the back of healthy demand and increasing contribution from self-employed class, said the brokerage note.
"We expect loan book to witness a 29% CAGR over FY16-18E to ?12,808 crore. This, along with improvement in asset quality is expected to result in healthy return ratios," added the note.
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