Buy Repco Home Finance with a target at Rs 715: JM Financial Research
Loan growth was robust at 28 per cent YoY and 7.5 per cent QoQ while repayments rate increased to 4.7 per cent in 4Q16.
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| Updated: JM Financial Research maintains buy rating on Repco Home Finance post March quarter results with a 12-month target price of Rs 715.
Loan growth was robust at 28 per cent YoY and 7.5 per cent QoQ while repayments rate increased to 4.7 per cent in 4Q16. The margins remained stable at 4.6 per cent while asset quality remained healthy with GNPL ratio remaining stable YoY at 1.3%.
"We forecast 23 per cent earnings CAGR over FY16-18E with ROE of 18 per cent in FY18E. We value Repco at 3.4x Mar'18 BV implying 12 month fwd TP of Rs715," said the brokerage firm.
Loan growth was robust at 28 per cent YoY and 7.5 per cent QoQ while repayments rate increased to 4.7 per cent in 4Q16. The margins remained stable at 4.6 per cent while asset quality remained healthy with GNPL ratio remaining stable YoY at 1.3%.
"We forecast 23 per cent earnings CAGR over FY16-18E with ROE of 18 per cent in FY18E. We value Repco at 3.4x Mar'18 BV implying 12 month fwd TP of Rs715," said the brokerage firm.
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