Repco Home Finance Q3 Results Review - Asset Quality Improved; Valuations Comfortable: IDBI Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Repco Home Finance Ltd.'s assets under management growth remained steady at 7.8% YoY (up 2% QoQ) led by 9% YoY growth in disbursements. Management retained guidance at 12% AUM growth for FY24.Net interest margin declined slightly by 10 basis points QoQ to 5.3% led by increase in cost of funds. Management guided NIMs at 5.1% for FY25. Asset quality continued to witness improvement during the quarter with gross non-performing assets at 4.7% versus 4.9 % QoQ and PCR (on stage 3) improving from 51% (Q1 FY24) to 60% in (Q3 FY24).Net Interest Income grew by 18% YoY led by improvement in NIMs. Profit after tax grew by 23% YoY led by lower operating expenses (up 3% YoY) which supported return of equity at 3.1% (highest in last three years).We have moved to FY26E estimates and maintain our “Buy” rating with revised target price of 535 (earlier 515), valuing it at 1.0 times price/adjusted book value FY26E..Click on the attachment to read the full report:.HDFC Bank's Margins Set To Improve As Merger Impact Wanes, Says Bernstein.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Repco Home Finance Q3 Results Review - Asset Quality Improved; Valuations Comfortable: IDBI Capital

Loan book growth improved to 7.8% YoY versus 7.1% YoY (Q2 FY24) led by decline in repayments.

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