Repco Home Finance’s (RHF) Q3FY15 PAT of INR307mn was in line with our estimate as better‐than‐expected asset quality was offset by lower revenue traction. Key highlight was GNPLs rising mere 34bps to 1.99% (compared to historical trend of 80‐120bps QoQ rise in Q3) feeding into lower‐than‐expected credit cost of 19bps versus 50‐80bps in Q3 historically. Disbursements were muted at INR4.7bn (up mere 7% YoY) resulting in sub‐30% loan growth (at 27% YoY). However, management expects them to revert to normal levels. The potential to grow manifold in an underserved market underpinned by sufficient CAR of 21.5% will sustain RHF’s loan CAGR of 25% plus and help it post impressive 24% plus earnings CAGR, 2.5% RoA and 20% RoE. We maintain ‘BUY’ and target price of INR770 (on 4.2x FY17E P/B).