6 REPCOHOME share price target reports by brokerages below. See what is analyst's view on REPCOHOME share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Repco Home Finance (RHFL) has reported its 3QFY20 results with the key pointers being: (1) Overall loan book grew 9% YoY, 3% QoQ at Rs116bn. Shift towards salaried segment continued (2) Asset quality broadly stable with gross stage 3 assets at 4.2% (flat QoQ, +30 bps YoY) (3) NIM improved 10bps YoY, 30 bps QoQ at 4.6% (See detailed conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L items, RHFL posted NII growth of 14% YoY at Rs1,318mn, PPOP growth of 12% YoY at Rs1,048mn and PAT growth of 25% YoY at Rs697mn. We have revised our estimates for FY20/FY21/FY22 and retained Buy rating on RHFL, revising our target price to Rs399 (from Rs394 earlier) and valuing the stock at 1.1x H1FY22E P/BV.
Over the past three quarters, REPCO has managed the liquidity situation with a high share of bank and NHB borrowings, thereby depending less on market borrowings. Its spreads have been largely intact. However, the ground situation in Tamil Nadu is still bleak. Hence, we expect 10- 11% AUM CAGR over the medium term. We cut our PBT estimates by ~4% for FY20/21. Maintain Buy with a target price of INR370 (1.0x Sep’21E BVPS).
Our concerns on Repco are, a continued subdued growth in TN, a late diversification outside home state followed by an aggressive growth and stickiness in NPA with inadequate provisioning. We see growth as the key to earnings revival, which we currently expect at a CAGR of 12% of FY19-21E; higher than build-in credit costs is the key risk to our already subdued earnings forecast. The recent correction provides an upside to our Target Price of INR 390. We have an Accumulate rating on the stock.
We are positive on RHF’s presence in an under-served market and grip on the self- employed segment. However, current challenges are likely to reset its near-term growth, which will moderate EPS growth. That said, post-correction, the stock is trading at 0.9x FY21E P/BV, rendering risk-reward favourable. Hence, we are upgrading the stockto ‘BUY/SP’ from ‘HOLD/SU’ with a TP of INR460 (unchanged).
In spite of an in line 1Q performance (higher but sub-par growth, seasonal NPA spike and higher LLPs) we reduce multiple to 1.5x (from 2x) for REPCO given deteriorating macros. Maintain BUY. Our TP is Rs 443.
We have revised our NII estimates by 0.7%/0.8%, PPOP estimates by 1.6%/1.8%, and PAT estimates by 1.6%/1.9% for FY20/FY21, respectively. We have retained Buy rating on RHFL, revising our target price to Rs424 (from Rs495 earlier) and valuing the stock at 1.4x FY21E P/BV.
We have revised our NII estimates by -7.9%/-10.7%, PPOP estimates by -18.1%/- 21.4%, and PAT estimates by -7.5%/-14.8% for FY20/FY21, respectively. We have retained Buy rating on RHFL, revising our target price to Rs498 (from Rs523 earlier) and valuing the stock at 1.6x FY21E P/BV.
Repco Home Finance (RHFL) has reported its 3QFY19 results with the key pointers being: (1) NIM was stable at 4.4% QoQ as lending rate hikes prevented higher cost of funds from damaging NIM further (2) Loan growth remained tepid at 12% YoY as issues pertaining to home state of Tamil Nadu continued to persist (3) Cost to income for 9MFY19 rose to 19.7% with management guiding for a normalisation to 18-19% in FY20. (4) RHFL is a beneficiary of IndAS from a provisions perspective. (See detailed conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L items, RHFL posted NII growth of 3% YoY at Rs1,152mn, PPOP growth of 4% YoY at Rs939mn and PAT growth of 31% YoY at Rs556mn. We have revised our estimates for FY19/FY20/FY21 and retained Buy rating on RHFL, revising our target price to Rs456 (from Rs558 earlier) and valuing the stock at 1.4x 1HFY21E P/BV.
Given the preponderance of its TN lending, in spite of commendable steps for geographical diversification, we expect growth to marginally improve, hereon. While margins improved this qtr, we believe they may come under pressure as borrowings are re-priced. The oscillating GNPAs are suggestive of lumpy exposures, contrary to mgt commentary. Given the attractive valuations, we maintain BUY with a TP of Rs 570 (2xDec-20 ABV of Rs 285).
Schaeffler is well poised for growth in the automotive and industrial segments led by product launches and a greater bearing content. We estimate a 25% PAT CAGR and a 500bps RoCE expansion over CY18–20. Maintain ‘BUY’ with a TP of INR6,175.
REPCO has a niche business model catering to the informal segment. The company has demonstrated its strength in its home state and has also expanded to 10 other states. Its business model enables it to earn higher spreads and return ratios, compared to peers. Despite the tight liquidity situation, the company has been able to grow its business at stable spreads. However, over the past two years, REPCO has been plagued with several issues. Sand mining problems in TN have led to a slowdown in loan growth, with no end in sight. There have also been asset quality issues in LAP, which remain to be resolved. We cut our FY19/20E EPS estimates by 2-3% to factor in higher credit costs/opex. Maintain Buy with a TP of INR480 (1.5x Dec 2020E BVPS).
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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