Buy Reliance Home Finance; target of Rs 91: Cholamandalam Securities

RELHF’s loan book grew by 26% YoY to INR 156.4bn (lower than CSEC’s estimate of 47%). However, the book declined by 4.5% sequentially. Growth in AUM came predominantly from Construction finance and individual loans segments which grew by 25% and 21% YoY respectively. The management expects its AUM to grow by 45% CAGR over FY19-21E. Self employed segment, being the niche area for the company, continued to constitute 75% of Home loan disbursements in 1QFY19. Adding to the de-growth in loan book, the company also saw a 30bps (QoQ) dip…

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Buy Repco Home Finance; target of Rs 684: Cholamandalam Securities

Cholamandalam Securities’ research report on Repco Home Finance   RHFL’s loan book grew at moderate rate (10.3%YoY, 3.9%QoQ) to INR 99bn on the back of higher disbursements (27.7% YoY, 29.2% QoQ). In 4QFY18, Sanctions grew by 32.2% YoY (19.4% QoQ) which poses healthy loan growth trajectory for coming quarters. The management expects loan book to grow by ~20% in FY19E (15% growth in TN and 20-25% growth in ex-TN regions) and disbursements by 35-36% in FY19E. Growth in loan book was led by salaried segment (18.8%YoY). Non-salaried segment witnessed a moderate…

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