1. At a Glance – Blink and You’ll Miss It
Repco Home Finance Ltd is that stock which never trends on Twitter, never features in Telegram pump groups, and still sits quietly at ₹404 with a market cap of ₹2,529 crore, wondering why nobody is talking about it. This is a housing finance company trading at 0.70x book value, P/E of 5.5, ROE of 14.4%, and paying you a dividend yield of ~1.1%—basically screaming “value” in a market obsessed with “story stocks”.
Latest numbers?
- AUM: ₹14,492 crore (FY25)
- PAT (TTM): ₹461 crore
- EPS (TTM): ₹73.7
- GNPA: 3.26% (down from 4.08% YoY)
- CAR: A nuclear-level 34.7%
Yet the stock is down ~5% in 3 months, flat over 1 year, and ignored like last year’s mutual fund NFO brochure.
So what’s going on here? Is this a boring goldmine… or a value trap with a polite smile? Let’s dig.
2. Introduction – The Most Unfashionable Finance Stock in the Room
Repco Home Finance is not new. It was established in April 2000, back when dial-up internet was still a thing. It’s a subsidiary of Repco Bank, a cooperative bank focused on a specific customer base, and that DNA shows clearly in Repco Home’s loan book.
This is not a flashy HFC chasing premium salaried borrowers in Mumbai skyscrapers. Repco lives in Tamil Nadu, loves self-employed borrowers, and gives loans where paperwork is… let’s say, “relationship-based”.
And that’s exactly why the market doesn’t love it.
But here’s the twist: despite all this,
- It makes ROE ~14–15% consistently
- Has no corporate or wholesale exposure
- Has survived multiple credit cycles
- And is now improving asset quality after years of pain
So why is the stock still priced like it’s about to commit a financial crime?
Good question. Keep reading.
3. Business Model – WTF Do They Even Do?
Repco Home Finance does two things, and it does them repeatedly, every day, without drama.
1) Individual Home Loans (73% of AUM)
This
includes:
- Purchase & construction loans
- Renovation loans
- Plot loans
- “Dream Home”, “Super Loan”, and other very optimistic product names
Ticket size?
👉 Average loan: ₹12.9 lakh — not ₹1 crore Mumbai apartments, but real India housing.
2) Loans Against Property (LAP) / Home Equity (27% of AUM)
These loans are typically taken by:
- Small traders
- Self-employed professionals
- MSME owners
Higher yield, higher risk, higher stress during downturns. Repco knows this well — it has the scars to prove it.
Customer Mix:
- Salaried: 48%
- Non-salaried: 52%
This 52% non-salaried exposure is both Repco’s edge and its problem.
Edge, because yields are fat.
Problem, because credit cycles hit these borrowers first.
Question for you: do you prefer boring salaried loans… or spicy self-employed yields?
4. Financials Overview – The Quarter That Actually Matters
Quarterly Performance Table (₹ crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 457 | 445 | 441 | 2.7% | 3.6% |
| Financing Profit | 159 | 152 | 146 | 4.6% | 8.9% |
| PBT | 149 | 144 | 139 | 3.5% | 7.2% |
| PAT | 115 | 113 | 110 | 2.0% | 4.5% |
| EPS (₹) | 18.45 | 18.09 | 17.53 | 2.0% | 5.2% |
Annualised EPS (Q3 rule):
Average of Q1–Q3 EPS × 4 ≈ ₹74, which matches TTM EPS. No funny business here.
Commentary:
This is not explosive growth. This is controlled, boring, banker-style compounding. The kind that doesn’t excite markets but quietly builds net worth.
Are you okay with that pace?
5. Valuation Discussion – How Cheap Is “Too Cheap”?
Method 1: P/E Based Valuation
- Annualised EPS: ~₹74
- Conservative multiple: 6–8x (still below peers)
Fair
