Repco Home Finance spurts after Q1 PAT rises 2.6% YoY

Repco Home Finance hit an upper circuit of 5% at Rs 181.90 after the company's consolidated net profit rose 2.6% to Rs 64 crore on 4.1% increase in total income to Rs 341.92 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) skid 10.6% to Rs 85.86 crore in Q1 June 2020 over Q1 June 2019. Current tax expense for the quarter tumbled 20% at Rs 21.41 crore from Rs 26.75 crore in Q1 June 2019. The Q1 result was declared after market hours on Friday, 4 September 2020.

The overall loan book rose 6% to Rs 11,979.50 crore at the end of June 2020 on comparison to Rs 11,342.10 crore at the end of June 2019. Loans to the self - employed segment accounted for 51.7% of the outstanding loan book and loans against property product account for 18.7% of the same. Stage 3 assets stood at 4% of the loan assets as at the end of June 2020 as compared to 4.2% as at the end of June 2019.

As required under IND AS, the company has carried provisions for expected credit losses to the tune of Rs 236.10 crore or 2% on total assets. Stage 3 coverage ratio stood at 41% at the end of June 2020 as compared to 31% in the previous year.

The capital adequacy ratio stood provisionally at 26.2% comprising entirely of Tier-1 capital. The minimum capital adequacy ratio prescribed by the National Housing Bank is 12.0%.

Repco Home Finance is a professionally managed housing finance company head quartered in Chennai, Tamil Nadu. It is registered as a housing finance company with the National Housing Bank (NHB).

As on 20 June 2020, the company had a total network of 153 branches and 24 satellite centers apread across Tamil Nadu, Karnataka, Andra Pradesh, Telengana, Kerala, Maharashtra, Odisha, Gujarat, West Bengal, Madhya Pradesh, Jharkhand, Rajasthan and the Union Territory of Puducherry.

On BSE, 26,000 shares were traded in the counter, compared to a 2-week average of 2.41 lakh shares. It hit a 52-week high of Rs 365.50 on 21 January 2020 and a 52-week low of Rs 90.75 on 26 May 2020. The stock has currently doubled from its 52-week low level.

On the technical front, the stock's RSI (relative strength index) stood at 69.875. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 142.05 and its 200-day moving average (DMA) placed at 200.76.

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