Archive · 13 Jun 2025
Broker's Call: Repco Home Finance - Buy Rating and Outlook
Repco Home Finance is expected to grow its loans and improve its financial health.
The company's management is optimistic about achieving its goals, including increased loan disbursements and loan book growth.
They aim to keep the difference between interest rates within a small range and reduce the percentage of non-performing loans.
The company has made changes to help it grow, and these changes are already showing positive results.
The focus is on providing larger home loans while continuing to serve the same customer group.
Repco Home Finance management is confident in achieving ₹40,000 crore disbursements and 12% loan book growth.
The company aims to manage spread decline within 15-20 bps and improve GNPL ratio to 2.5% by year-end.
Management has put foundational levers for growth in place over the past 18-20 months.
Business productivity has yielded strong disbursement numbers in Q4 FY25, growing 28% q-o-q.
The company is focusing on higher-ticket home loans while maintaining the same customer segment.
- Who
- Repco Home Finance management and the analyst.
- What
- A financial analysis and outlook on Repco Home Finance
- When
- Current financial year, with projections to FY27.
- Where
- N/A
- Why
- To understand the drivers of loan growth and other key financial metrics.
- Target Price
- ₹560
- CMP
- ₹423.80
- Loan Book Growth Target
- 12%
- GNPL Ratio Target
- 2.5% by year-end
- Disbursement Target
- ₹40,000 crore