Repco Home Finance Q1 FY26: High CAR, Low P/E, and the South India Mortgage Mafia
1. At a Glance
Repco Home Finance Ltd (REPCOHOME) — the Chennai-based housing finance company that smells more like your neighbourhood chit fund but operates under NHB’s watchful eye — trades at ₹363 with a market cap of ₹2,272 Cr. The company boasts an AUM of ₹14,492 Cr (73% housing loans, 27% LAP) with a juicy NIM of 5.2%. FY25 PAT hit ₹464 Cr with an EPS of ₹74.2, which at a P/E of just 4.9x screams “either undervalued gem or ignored relative at a wedding.” Book value per share? ₹548. CMP to BV ratio: 0.66. Basically, the stock is cheaper than your EMIs after RBI’s latest repo cut.
2. Introduction
Repco Home is not HDFC Ltd. It’s not LIC Housing. Heck, it’s not even PNB Housing. Think of it as the “middle-class cousin” in the housing finance family — sticking to South India, avoiding big-ticket corporate loans, and funding the exact kind of borrowers who haggle ₹50 on a plot registration fee.
The company is a subsidiary of Repco Bank (set up in 1969 to cater to repatriates from Burma and Sri Lanka). That quirk makes Repco a very Chennai story — conservative, risk-averse, and still obsessed with housing loans in Tamil Nadu (57% of its AUM).
But don’t mistake boring geography for boring numbers. A CAR of 34.7% means capital adequacy is not just adequate, it’s overqualified. NIMs at 5.2% are better than LIC Housing’s 3%. And despite NPAs at 3.26% (down from 4.08%), the company quietly spits out 14.4% ROE while trading at a P/B of just 0.66x.
Question for you: when a finance stock trades below book, is it a “hidden treasure” — or a “roach motel” where investors fear getting stuck?
3. Business Model – WTF Do They Even Do?
Repco is simple: lend to people for homes and properties, and pray they repay. No corporate lending, no infra exposure, no startup fantasy. Just two core buckets:
Home Loans (73% AUM): For construction, purchase, plot, renovation. Fancy names like Dream Home, Super Loan, Privilege. Basically, same EMI headache with different branding.
Loans Against Property (27% AUM): Prosperity Loan, New Horizon Loan. In other words, “mortgage your home to pay school fees or expand your kirana store.”
Customer Mix: 48% salaried, 52% non-salaried. Here’s the kicker: salaried NPAs = 1.8%, non-salaried NPAs = 4.6%. Translation: your engineer cousin pays EMIs, your self-employed uncle delays.
Geography: Tamil Nadu (57%), Karnataka (13%), Maharashtra (10%). It’s basically a Tamil Nadu-heavy lender with small outposts in the West. A Mumbai IPO investor might ask: “Repco who?” — but in Madurai, Repco is bigger than LIC agents.
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹436 Cr
₹408 Cr
₹426 Cr
+6.9%
+2.3%
EBITDA/Fin. Profit
₹149 Cr
₹132 Cr
₹152 Cr
+12.9%
-2.0%
PAT
₹115 Cr
₹113 Cr
₹121 Cr
+1.8%
-5.0%
EPS (₹)
18.4
17.9
19.3
+2.8%
-4.7%
Commentary: Stable, boring, consistent. Annualised EPS ~₹74. P/E of 4.9 screams “undervalued.” But investors have trust issues, thanks to sticky NPAs and South India dependence.
