Top Stock to Buy with Anil Singhvi – Repco Home Finance: In today’s edition of Budget 2021 Stock Picks with Zee Business Managing Editor Anil Singhvi, Senior Research Analyst Varun Dubey brings another stock that will be in flavour till the budget announcement on 1 February and even after it. This stock is Repco Home Finance which is a housing finance company. Know what standout for this counter.

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Dubey said that the company is very strong in terms of fundamentals and has very attractive valuations. It is based out of South India and 85 per cent of its business comes from this part. The clientele is salaried class and the ticket loan size falls into the affordable segment. The trigger for this company is the improvement in the housing segment. The sales in residential segment have been good over the last four months. This company is expected to benefit from this, he added.

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The company has significantly improved its loan disbursement since September. The cost of funds are already low, the benefit of which will come for the company.

It is also one of the few companies that has manage to contain the net interest margins for the last five years. It is between 4-4.7 per cent. It is also expanding outside South India.

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Repco Home Finance Stock Valuations

The forward-looking price-to-book value is below 1. This stock is currently trading around Rs 275. It is a must have stock in portfolio.

Anil Singhvi’s View on Repco Home Finance

The Market Guru said that there are two strong reasons why this company would do well. One is that the valuations are very attractive and much below its peers Home First Finance, whose IPO opened today or from Aavas. The current Price-to-book value is just 1.1.

Another reason is that the housing finance market is so huge that it has space for all players. The growth outlook is great, he added. The chances of NPAs are very minimal as the people who take loans are salaried class.

There are very few small companies which have investments from FIIs and DIIs of 20 per cent each. It is more than the promoter holding of 37 per cent. It is an investment grade stock, he concluded.