22 May 2015
4QFY15 Result Update | Sector: NBFC
Repco Home Finance
BSE SENSEX
27809
Equity Shares (cr)
52-Week Range (Rs)
1,6,12 Abs.Perf.(%)
M.Cap. (Rs cr)
M.Cap. (US$ b)
S&P CNX
8421
6.2
725/369
-3/10/43
3,786
63.1
CMP: INR609
YEAR NET INC PAT
END
FY15E
FY16E
FY17E
(INRCr) (INRCr)
262
324
407
137
172
220
EPS
(INRCr)
22.0
27.6
35.2
EPS
TP: INR750
PE
(X)
27.7
22.1
17.3
ABV
(INR)
130
154
186
P/ABV
(INR)
4.7
4.0
3.3
ROAA
(%)
2.6
2.5
2.5
Gr.(%)
24
25
28
BUY
ROAE
(%)
17.5
18.9
20.3
Result Highlights - In line quarter
Net Income at INR 74.6cr grew 27% (est. INR 73.6cr); Pre Provisioning Profits grew 24% at INR 58.1cr (est. INR
57.4cr); Adj. PAT at INR 39.0cr grew 24% (est. INR 38.5cr)
Loan growth remains robust at 29%; Disbursements growth bounced back to 47% for the quarter due to spillover from
the previous quarter (3QFY15 growth at 7%); Absolute GNPAs have marginally risen, while GNPAs as % of loans
have declined 15bp YoY to 1.32%.
INRCr
Interest Income
Interest Expense
Net Interest Income
Other Income
Net Income
Pre Prov. Profit
Provisions
Profit Before Tax
Tax Provisions
Adj. PAT
Loan Growth (%)
NIMs (%)
Gross NPAs (%)
Net NPAs (%)
ROA (%)*
ROE (%)*
4QFY14
145
91
54
5
59
47
4
43
11
31
32
4.7
1.5
0.7
2.7
16.4
3QFY15 4QFY15
171
112
59
5
64
14
50
3
47
13
34
27
7
4.5
20.5
2.0
1.2
2.4
16.2
183
117
66
9
75
16
58
6
52
13
39
29
47
4.5
20.5
1.3
0.5
2.3
16.1
YoY
26%
29%
23%
66%
27%
37%
24%
21%
15%
24%
QoQ
7%
4%
13%
74%
17%
16%
18%
11%
2%
14%
FY14 FY15
511
325
186
24
211
39
172
23
149
39
110
32
47
4.7
18.4
1.5
0.7
2.7
16.4
669
432
237
24
262
55
207
186
49
137
27
27
4.5
20.5
1.3
0.5
2.6
17.5
YoY
31%
33%
27%
0%
24%
42%
20%
25%
25%
25%
Operating Expenses 12
52% 137%
20 -10%
Disbursement Gr (%) 31
Cost to Inc Ratio(%) 18.4
Note:* 2Q & 3Q FY15 ROA & ROE are based on reported PAT (incl. DTL exp.) and hence lower. Annual figs. are based on Adj. PAT
Valuation and view
Loan/Disbursement growth maintains momentum:
Disbursement growth durng the quarter was at +47% as much of the
loans which were sanctioned towards the end of 3QFY15 were disbursed during the current quarter and as a result
disbursement growth in 3QFY15 was at just 7%. Loan book grew by a healthy 29% to INR 6013cr. Further, management
has maintained its guidance of growing its loan book by 25-30% annnually in coming years.
Niche business model:
Repco's niche focus on lower ticket-size loans (average Rs 12 Lacs), non-salaried segment
(57% of loans) and smaller geographies (tier 2 & 3 cities) is likely to aid growth with minimal competition from banks in
this segment.
Strong growth combined with healthy profitability:
Operating with lean cost structure and manageable credit costs,
Repco has been consistently operating at ROA (Return On Asset) profile of around 2.5%. With visibility of limited risks to
its competitive advantages in the medium term, we expect RoAs to sustain at current levels. Given its high capitalisation
(20.3% CAR) Repco can grow at 25-30% CAGR for the next three years and achieve 20% ROE without requiring capital
infusion.
Valuation & View:
We expect the stock to give compounded returns of 25% over the next three years (i.e 2x in three years).
We maintain our target on the stock at INR 750 valuing the stock at a P/ABV of 4.0x based on FY17E ABV.
Jehan Bhadha
(jehan.bhadha@MotilalOswal.com); Tel: +91 22 33124915

Repco Home Finance
Action Construction Equipment Ltd.- Financial & Valuation
INCOME STATEMENT (Consolidated)
Y/E MARCH
2008A
2009A
(RS CRORE)
2010E 2011E
2012E
RATIOS
Y/E MARCH
2008A
2009A 2010E
2011E 2012E
Net Sales
growth (%)
Other Income
Total Income
Staff Costs
Mfg. & other expenses
Admn, S&D Exp.
Other Expenses
Total Expenditure
EBITDA
% of Net Sales
Depreciation/Amortization
Finance Charges
PBT
Tax
Minority Interest
PAT
growth (%)
PAT MARGIN
406
60
10
416
15
330
18
4
368
49
12
3
2
43
9
0
34
184
8%
428
5
17
445
18
366
18
8
409
36
8
6
5
26
7
1
19
-45
4%
427
0
6
433
21
348
19
5
394
40
9
5
4
31
8
1
22
19
5%
645
51
6
651
29
523
29
8
589
62
10
6
5
51
14
0
37
67
6%
795
23
6
801
32
646
35
10
723
78
10
6
5
67
18
0
49
31
6%
Adjusted EPS
Growth (%)
Cash EPS
Book Value
DPS
Payout (Incl. Div. Tax) (%)
Valuation (x)
P/E
Cash P/E
Price/Book Value
EV/EBITDA
EV/Sales
Div. Yld
Return Ratios (%)
RoE
RoCE
Leverage (x)
Debt/Equity (x)
3.8
125
3.6
14.5
0.8
25
12.4
11.4
3.3
8.7
1.0
1.7
29
34
0.2
2.1
-44
1.9
15.9
0.4
22
22.0
16.9
3.0
12.2
1.0
0.8
14
18
0.3
2.6
22
4.2
17.7
1.0
45
18.1
14.8
2.7
11.0
1.0
2.1
15
18
0.2
4.1 5.3
57
29
2.8 3.2
21.7 25.1
1.4 1.6
39
35
11.8
10.0
2.2
7.1
0.7
2.9
21
27
0.1
9.0
8.0
1.9
5.7
0.6
3.3
22
29
0.1
BALANCE SHEET (Consolidated)
Y/E MARCH
2008A
2009A 2010E
(RS CRORE)
2011E 2012E
CASH FLOW STATEMENT
(RS CRORE)
2008A
2009A 2010E
2011E 2012E
Y/E MARCH
Equity Share Capital
Preference Share Capital
Reserves & Surplus
Shareholders' Funds
Minority Interest
Total Debt
Net deferred tax
Liabilities
Net Block
Capital WIP
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Current Liabilities & Provisions
Net Current Assets
Total Assets
18
0
112
130
0
23
0
153
65
5
171
37
54
21
58
88
83
153
18
0
125
143
0
39
1
183
74
1
201
55
52
19
76
94
108
183
18
0
141
159
0
30
1
190
79
3
234
60
51
20
104
126
108
190
19
0
182
201
0
30
2
233
103
4
282
82
71
25
104
156
126
233
19
0
214
233
0
30
1
264
127
3
311
98
87
22
104
177
134
264
PBT before EO items
Add :
Interest
(Inc)/Dec in WC
Others
CF from Operating activities
(Inc)/Dec in Fixed assets
Others
CF from Investing activities
Issue of equity
Inc/(Dec) in debt
Dividend paid
Less: Interest paid
Others
CF from financing activities
Inc/(Dec) in cash
Add: Beginning balance
Closing Balance
Depreciation
34
3
-1
-8
10
38
-43
2
-41
0
13
-11
-1
-16
-16
-18
40
21
19
6
1
-18
-13
-5
-10
3
-8
0
17
-4
-3
0
9
-3
21
19
31
5
4
-3
-10
26
-12
2
-10
0
-9
-4
-4
0
-16
1
19
20
51
6
5
-16
-16
30
-30
0
-30
20
0
-9
-5
0
6
6
20
25
67
6
5
-13
-21
44
-30
0
-30
0
0
-12
-5
0
-17
-3
25
22
4 February 2015
2

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