Repco Home Fin (REPCOHOME)
Slow GrowerFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹357.55 |
| Market Cap | ₹2,236.88 Cr |
| P/E Ratio | 4.64 |
| ROCE | 10.97% |
| ROE | 14.18% |
| Dividend Yield | 2.34% |
| Profit Growth | 5.74% |
| Debt/Equity | 3.18 |
| Sales Growth | 3.68% |
| Promoter Holding | 37.13% |
| 52-Week Range | ₹333.6 — ₹455.9 |
| Sector | Finance |
| Book Value | ₹645.96 |
Strengths
- Trading at a P/B of 0.86 and P/E of 5.17 provides a margin of safety.
- ROE of 14.18% and ROCE of 10.97% show decent capital efficiency.
- Piotroski F-score of 7/9 suggests financial stability despite leverage.
- Latest quarter net profit of ₹115 Cr on sales of ₹457 Cr implies a strong margin.
- Promoter holding of 37.13% indicates reasonable owner alignment.
Concerns
- Growth is tepid: sales up only 2.66% and profit up 2.01%.
- PEG of 2.21 suggests the low P/E is not cheap on a growth-adjusted basis.
- High leverage with debt/equity of 3.18 increases vulnerability in a downturn.
- Dividend yield of 1.18% offers limited income support.
AI Analysis
Repco Home Fin is the kind of name Graham would make me look at twice: price-to-book of 0.86, price-earnings of 5.17, and a market cap of ₹2,383 crore. A financial company trading below book can be a value trap or a bargain, and the difference lies in asset quality and capital allocation. The numbers I see are mixed but mostly stable. Return on equity is 14.18%, and return on capital employed is 10.97%, decent for a housing finance firm. The latest quarter produced ₹457 crore of sales and ₹115 crore of net profit, a strong margin. The Piotroski F-score of 7 out of 9 suggests the company is not deteriorating financially. That is important because debt-to-equity of 3.18 is high, even for an HFC. Growth, however, is pedestrian: sales and profit are up only around 2-3%. This is a slow grower, not a compounder. A PEG of 2.21 confirms that the earnings yield is not being driven by growth. The dividend yield is just 1.18%, so I am not getting paid much to wait. Promoter holding of 37.13% is reasonable. At 0.86 times book, the market is giving me a margin of safety, but with low growth and a leveraged balance sheet, I would want to know why the market is sceptical. Is the loan book growing? Are NPAs under control? Without that evidence, I cannot call this a wonderful business. It is a potentially cheap, slow-moving financial asset, and I would wait for either a better price or clearer signs of improving returns.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer