DINESH

Repco Home Finance

Industry: HFCs
Latest CMP 358
Today's Change ▼ -1.26%
52-Week High / Low 448 | 337
Price Date: 14-Aug-2026
Recommendation Sell
Target Price 454
Expected Upside 12.7%
Forecast Horizon 2 Years
Historical CAGR 6.8%
1,000 Invested 01-Apr-2013
Today's Value 2,413
Investment Period 13 Years

Stock Snapshot

Post Results Return
-7.3%
Mild Negative Re-rating
1-Year Target Price
407
2-Year Target Price
454
52-Week High / Low
448 / 337
20-Day Return
-11.8%
Market Cap (Cr.)
2,237
Current PE
4.9
P/BV Ratio
0.6
Dividend Yield
1.2%
Industry PE
15.2

Price Performance

Basis of our Recommendation

Repco Home Finance's recent operational momentum, highlighted by record disbursements and a strategic focus on expanding into under-penetrated markets, positions the company favorably for sustained revenue growth. Management's target of Rs.5000 Cr in disbursements and an AUM of Rs.18,000 Cr by FY2027 reflects confidence in its growth trajectory, despite challenges such as high prepayment rates and competitive yield compression. Vista's financial outlook anticipates stable revenue growth and margins, supported by improving asset quality and a favorable macro environment for housing finance. The company's ability to maintain a strong dividend payout while navigating these challenges underscores its commitment to shareholder value. However, potential regulatory changes and competition from alternative financing sources remain critical watchpoints. Overall, Repco Home Finance is well-positioned to capitalize on the expanding affordable housing market, with a target price of Rs.430 in 12 months, reflecting an expected upside of 10.4%

👍 Why We Like This Stock

  • Record disbursements and a strong growth outlook in under-penetrated markets support revenue expansion
  • Improving asset quality, with GNPA reduced to 2.55%, enhances financial stability and investor confidence
  • Management's commitment to a 75% dividend payout reflects a strong focus on shareholder returns amidst growth initiatives

Things To Watch Out For

  • High prepayment rates and competitive yield compression pose challenges to AUM growth and margin stability
  • Potential regulatory changes could impact operational flexibility and market dynamics
  • Intensifying competition from alternative financing sources may pressure market share and profitability

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Improving
Analyst View
Hold
Dividend History
Consistent
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 682 750 808 845 934
Profit Before Tax (Cr.) 525 584 582 572 646
PBT Margin 77.0% 77.9% 7201.9% 67.8% 69.1%
Net Profit (Cr.) 438 491 500 465 525
Earnings Per Share 70.0 78.5 79.9 74.4 83.9

Analyst Recommendations

Broker Recommendation Target Price Date
HDFC Securities ► Add 580 13-Aug-2026
Consensus Recommendation ► Hold
Consensus Target 580
Coverage 1 Analysts
Analysts' Viewpoint
Repco Home Finance is experiencing a recovery in growth, driven by improving asset quality, which positively impacts its valuations. Analysts highlight strong disbursement growth as a key positive factor. However, challenges remain with asset under management (AUM) growth and ongoing margin pressures, which temper the overall outlook. The consensus remains cautious, reflecting a balanced view of the company's current strengths and operational constraints.

Company Overview

Show Company Profile

Repco Home Finance Limited operates as a housing finance company in India. The company offers dream home, composite, fifty plus, NRI housing, plot, Repco privilege, green and easy home, advantage, and home 25 loans. It also offers repair, renovation, extension, and multipurpose loans, including home makeover and super loans. In addition, the company provides new horizon, prosperity, commercial real estate, and Repco nivaran plus loan. Repco Home Finance Limited was incorporated in 2000 and is headquartered in Chennai, India.