Repco Home Finance Limited

Financial Services — Mortgage Finance · NSE

₹341.00+₹11.55 (+3.51%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Repco Home Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Repco Home Finance Limited operates as a non-banking financial and housing finance company in India. It offers housing finance to purchase, construction, repairs, and renovations. The company was incorporated in 2000 and is headquartered in Chennai, India.

IndustryMortgage Finance

SectorFinancial Services

Employees1,384

Annual revenue₹1,776 Cr

How does it make money?

Turns over ₹1,776 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 1,384 employees supports ₹1.28 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin32.4%

Net margin26.8%

Revenue / employee₹1.28 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE4.3%

ROE11.8%

Peer median ROE16.5%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 10.7% and earnings to grow about 6.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.7%

Est. earnings growth+6.8%

Analysts7

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +204% while net margin moved -51% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+204%

Margin effect-51%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.47 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

76/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

4.5x

3Y Median

6.1x

40 monthly readings · mean 6.6x · range 4.5x–11.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 6.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 74% below the peer median of 17.0x.

vs. its own history

Cheap

6.1x median over 40 months · -27%

vs. sector peers

Cheap

17.0x median of 4 peers · -74%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

4.5x

P/B

0.53x

EV/EBITDA

24.4x

PEG

0.31

Dividend Yield

3.52%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 4.5x the stock trades 27% below its own median of 6.1x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 191.1% to 32.4% over 3 years.
Short-term liquidity is tight
Current ratio of 0.52 — near-term obligations exceed near-term assets.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 158.7 points, from 191.1% to 32.4%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 191.1% to 32.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 34% a year✓ 44.9% CAGR
Latest reported year was 3.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 32.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 10%✓ 11.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 6.1x✓ 4.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹2,133 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.5x

Cheap

Cheap against the generic band

P/B Ratio

0.53x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹76.59

Profitable

Profitable on a per-share basis

ROE

11.8%

Moderate

Moderate capital efficiency

ROCE

4.3%

Weak

Low return on total capital employed

Debt/Equity

3.02x

High

High leverage

Revenue Growth (YoY)

3.8%

Modest

Modest growth

Profit Growth (YoY)

5.7%

Modest

Slow profit growth

Dividend Yield

3.52%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹923 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹341

P/E (Forward)

4.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

71.4%

Good

Healthy core-business profitability

Net Margin

56.8%

Good

Strong bottom-line conversion

Current Ratio

0.52

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

341.2 / 353.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹584 Cr	₹1,515 Cr	₹1,690 Cr	₹1,776 Cr	+44.9%
EBITDA	₹1,117 Cr	₹531 Cr	₹550 Cr	₹576 Cr	-19.8%
EBITDA Margin	191.1%	35.1%	32.5%	32.4%	—
PAT (Net Profit)	₹316 Cr	₹413 Cr	₹471 Cr	₹475 Cr	+14.6%
EPS	₹50.56	₹66.04	₹75.33	₹75.99	+14.5%
ROE	12.2%	13.0%	13.0%	11.8%	—
ROCE	—	3.8%	4.7%	4.3%	—
Total Debt	₹9,946 Cr	₹10,701 Cr	₹11,139 Cr	₹12,206 Cr	+7.1%
Free Cash Flow	-₹371 Cr	-₹708 Cr	-₹637 Cr	-₹923 Cr	—

🟢 Revenue has grown at 44.9% a year over 3 years.

🔴 EBITDA has shrunk at 19.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 191.1% to 32.4% over 3 years (-158.7 pts).

🟢 PAT (Net Profit) has grown at 14.6% a year over 3 years.

🟢 EPS has grown at 14.5% a year over 3 years.

🟡 ROE has held roughly flat at 11.8% over 3 years.

🟡 ROCE has held roughly flat at 4.3% over 3 years.

🔴 Total Debt has grown at 7.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹16,444 Cr

Total Liabilities

₹12,404 Cr

Total Debt

₹12,206 Cr

Cash & Equivalents

₹287 Cr

Operating Cash Flow

-₹896 Cr

Capex

-₹27 Cr

Shareholding (proxy)

Institutional Holding

34.5%

Insider Holding

37.1%

Corporate Actions

Dividend Rate

₹12

Ex-Dividend Date

22 Sept 2026

Analyst Consensus

Recommendations

4 Buy · 3 Hold · 0 Sell

Target Price (Mean)

₹465.29

+36.4% vs CMP

Target Range

₹375 – ₹557

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive5 general

Repco Home Finance (REPCOHOME.NS) Falls 2.40% to ₹329.0, Nears Key Support Zone - Golden Cross

https://www.siam.in/, 12 Oct

Repco Home Finance secures voluntary ESG rating of 62 (Strong)

scanx.trade, 15 Oct

Repco Home Finance Share Price: price action and valuation

Univest, 05 Oct

Repco Home Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Housing finance stocks: Is the worst of perception over? Time for a relook? 11 HFC stocks with upside pote

The Economic Times, 14 Jul

Repco Home Finance Q4 Net Profit Rises 3.8% to ₹135 Cr on ₹450 Cr Revenue

Sahi, 21 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.8/20

🟢Financial HealthStrong17/20

🟡GrowthModest11.6/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive12.8/15

🟡RiskModerate5.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 34% a year44.9% CAGR
✓EBITDA margin holds above 30%32.4%
✓Return on equity stays above 10%11.8%
✓Valuation vs its own median of 6.1x4.5x today