REPCO home finance

This stock looks very interesting at current levels. Valued at 0.7 BV and 6 forward PE.
With covid situation under control, asset quality and growth should improve from here.

A low cost housing company for informal sector and a quasi PSU (like CanFin, LIC Housing and GIC housing) makes it very interesting play.

They have managed their books very well across two very bad cycles of demonatization (hit informal sector really hard which forms majority of their customers) and covid (again informal sector was hit hardest). This shows that organization has right culture and reasonably good underwriting skills.

Both Motilal and HDFC sec have target prices north of 400 and ICICIsec has target price of whopping 650.

With growth and re-rating both playing out for next few years, this can be quick multi-bagger.

Disclosure: Invested at current levels

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