REPCO HOME FINANCE
We had recommended Repco Home Finance in issue no. 8 dated Mar 20- Apr 2, 2017, when the scrip was trading at ₹633. Our recommendation was on the back of company’s strong financial performance across all segments and also the management’s strategic plans to expand business operations in different geographies in the next five years.
Repco Home Finance Ltd (RHFL) is a Chennai-headquartered housing finance company ncorporated in April 2000. RHFL has its presence in two segments,namely,individual home loans and loans against property. The company provides wide range of home loan products to both salaried and nonsalaried individual borrowers. It is registered with the National Housing Bank (NHB) as a housing finance company. The company has 31 satellite centres in Tamil Nadu, Andhra Pradesh, Jharkhand, Kerala, Karnataka, Maharashtra,mp, Odisha, West Bengal and Puducherry.
On the financial front, RHFL’S revenue increased 13.96 per cent to ₹273.53 crore for Q4FY17, as compared to Q4FY16. The company’s PBDT also increased 20.32 per cent at ₹79.69 crore, as against ₹66.23 crore in Q4FY16. Its PAT too increased 19.82 per cent from ₹42.22 crore to ₹50.59 crore in the fourth quarter of FY17.
On an annual basis, RHFL’S net income from operations stood at ₹1,014.07 crore, an increase of 19 per cent in FY17 as compared to ₹852.13 crore in FY16. The company’s PBDT increased 21.13 per cent to ₹283.73 crore in FY17 as compared to the previous year. The company’s PAT also grew by 21.44 per cent to ₹182.25 crore in financial year ended March 2017 as compared to ₹150.08 crore in the previous year.
After our recommendation, the share price of Repco Home Finance has increased by over 9 per cent. We would advise our reader-investors to Book Profit on the counter.