REPCO home finance – another Gruh in the making?

@RamanTiwari: Repco is one of my largest holding. Still I would like to disagree with couple of points.

1. Growth visibility for 10 years – HFC space is now super competitive with 60-70 HFC’s. Every NBFC is now into mortgage lending. So consistently growing at 25% for 10 years is difficult task. 15-18% over that period is reasonable.

2. Price doubling every 3 years from this point looks almost impossible. It’s not every day that an HFC is valued at 30-40 PE. This is bull market and we should not forget that valuations are much higher than they normally should.