Repco Home Fin (REPCOHOME)

FairStock Score: 37/100 — MIXED

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer